Investments / Insurance

Investments / Insurance

You should have come across the term ‘investment’ in a wide variety of contexts. For example, ‘ITC plans to invest in the modernization of its plant’, or ‘I must now invest in a house’, or ‘invest your savings in mutual funds’ or ‘ investment in shares and debentures promises very good returns’ are some of the situations when businesses/individuals visualize a pay-off by putting their money in productive avenues.

It may be appropriate at this juncture to define the term ‘investment’ in a general sense. You may look at the term investment as ‘postponed consumption’. For example, an employee who contributes a part of his salary to provident fund is postponing his present consumption for future consumption which would be made possible by a draft on his provident fund accumulating after his retirement. Similarly when you buy shares or securities out of money saved from your current income, your current consumption is curtailed and the return on shares/securities realized in future time periods would, inter alia, be available for future consumption.

M A K S AND ASSOCIATES provides Auditing, Taxation, Management Consultancy and provides Taxation, Company, Investments, Accounting, Auditing, Financial services, Management Consultancy and Advisor Services to various corporate and commercial clients as well as individuals throughout India and abroad. The firm represents a combination of specialized skills, which are geared to offers sound financial solutions and services.

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