26 Feb

Is there really a difference between Saving and Investing?
Most of us think that Saving and Investing are the same thing, however they are as different as chalk and cheese.

Tarun puts money aside on a regular basis. He spend less than he earns and he deposits the rest in the bank. This is Saving.

Arun goes a step further. He puts aside a fixed amount every month in Mutual funds. This is Investing.

Money kept in a safety vault though safe does not generate adequate returns to beat inflation. Money invested in products like stocks, mutual funds etc. is subject to risk but has the potential to grow over time.

The aim of any investment is to beat inflation. If your current monthly expenses are Rs. 50k, in 10 years you will require around Rs. 1 lakh to maintain the same lifestyle.

India’s household savings rate is around 30%, but the point is how wise are we as investors?

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