The video highlights the key differences between saving, stock trading and investment.
Savings: Savings ideally means deferred consumptions which means money kept aside. An individual can save for consuming later or for a contingency. Savings account and liquid mutual funds and two avenues through which individuals can build on their savings. The importance of saving if that your money is at minimum risk, hence the interest received on the amount is slightly higher than inflation,
Investing: Investing is a long term process. The importance of investment is that it helps your money grow. Mutual funds, stocks, bonds, fixed deposits are multiple avenues for investing money. You can visit https://www.edelweiss.in/oyo/mutualfund to invest in mutual funds online.
Difference between saving and investment:
Investment helps grow your money and staying invested for the long run will ensure that the value of your money steadily appreciates over time. Hence investments help provide a better return as compared to returns generated on a savings account.
Trading: Trading helps you make money quickly. Trading is a short term high risk and high return activity. It involves buying and selling of stocks, currencies and commodities listed to exchanges to gain high returns using tactical strategies. The important thing to note in stock trading is that while traders can earn big wins, they can also lose big time in case the market fluctuates. Hence it is important to do adequate research before investing, along with monitoring the performance of the stock you’ve invested in on a periodic basis.
You can visit https://www.edelweiss.in/market get further insights on stock markets and indices.
The key differences between savings, investment and trading can be summarized as below:
Savings: Low risk, low return
Investment: High returns, Low risk, Longer investment cycle
Trading: High risk, High returns
To know more on investments and trading visit https://www.edelweiss.in/.
Connect with us
Difference between Saving, Investing and Trading | Edelweiss Wealth Management