Investments are useful saving resources than bank deposits. Due to low rate of interest bank deposits and post office savings lost their attraction because low rate of interest in fixed rate. But in villages post office savings is still popular. Some factors made investment decisions important because they have longer life expectancy. People are planning today for the comfortable life after retirement. Thus they are always eager to invest in investments which are yielding high return with low fluctuation. Increased taxation rate made popular these investment products because people believe more paying higher tax means is the feature of
increasing value of the investments. Investments especially equity shares are best products comparing rate of return at the time of inflation. Availability of a complex number of investment outlets and availability of large number of products help to people to best portfolio to make good income.
Investment decisions have become significant to the people who retire between the age of 55 and 60. Wise employees are calculating in such a manner that part of their income put away as savings. Savings by themselves do not increase wealth so today banks and financial institutions, private mutual fund out lets helping them to invested in such a way that the principal and income will be adequate for greater number of retirement years. This is especially applicable to the countries like India.
The importance of investment decision is further enhanced by the fact that there are an increasing number of women working in organizations. These women will be responsible for planning their own investments during their working life so that after retirement they are able to have a stable life.
Taxation is one of crucial factors in any country because of taxation people are forced to invest their some part of salary in selected investments which help in bringing down the tax level by offering deductions in personal income.
Another
advantage of investments is the level of interest rates. Interest rate is varying between one investment and another. These may vary between risky and safe investments. A high rate of the interest is not only the factor favoring the outlet of the investment. The investor has to include in his portfolio several kinds of investments. Stability of interest is as important as receiving a high rate of interest.
Inflation is common in some seasons in developing countries. Rising prices affect the standard of living. But inflation time money is cheap but things are costly. At the inflation time variety of investment products are available. Before funds are invested, to make the right choice of investments the resources are selected carefully. The investor will try and search an outlet which will give him a high rate of return in the form of interest to cover any decrease due to inflation. He will also have to judge whether the interest or return will be continuous or there is a likelihood of irregularity.
Increase in investments always helps to increase employment opportunities. More incomes and more avenues of investment have led to the ability and willingness of working people to save and invest their funds. The growth and development of the country leading to greater economic activity has led to the introduction of a vast array of investment outlets. Apart from putting aside savings in savings banks where interest is low, investors are the choice of a variety of instruments.