Capital Wealth

Introduction – “Savings” and “Investing” for some folks are the same things, but when it comes down to it, they are entirely different things. They have different purposes and play different roles in your financial strategy.  What is “Saving” In layman’s terms, savings is income not spent but set aside for future use. Savings are generally kept in cash, or highly liquid assets, that are usually kept for a pre-determined purpose or goal, usually short-term. What is “Investing” Investment is using your money intending to make it grow, by purchasing assets that might increase in value in the hopes of a higher return. Risk, Return and Inflation – Risk, Return, and Inflation goes together in the world of financial markets. The most optimal situation that any person/investor would want is – Low Risk and High Return, that beats inflation by a good margin. But such a situation does not exist in the real world. Risk and Return are directly proportional i.e. higher the risk, higher the retur...