Understand What Investing Really Means

Many investments have a twofold purpose. Theyrare books
generate income and they increase in value. In- pension funds and such like including savings and
other words, if you invest a lump sum you getdeposit account
regular small payments of some kind and the- inventions and new product development
actual value of the capital itself increase, i.e. the- ideas and people
lump sum gets bigger.- theatre shows, films, TV programme
Let's suppose you invest in property. In an idealdevelopment
world you should be able to rent it out, thusAnd it doesn't have to be just plain old
providing the regular small payments in the forminvestment. There is also:
of rental income, and the value of the property- sponsorship such as race cars, football teams
should go up also, so your capital increases inetc. to raise brand awareness
value over time.- angelic capital - you invest in people and ideas in
Likewise shares should pay out dividends andan altruistic way rather than purely as a
should be worth more than you bought them formoney-making venture.
when you come to sell some time later. You getRemember that investments of any sort are a
the idea. And notice I say "should" rather thanform of gambling no matter which way you look
"will" - nothing is certain in this game.at it. And that you can lose.
You can of course invest in pretty well anythingOn the other hand, investing in a broad range of
you want:low risk investments can still net returns worth
- company shareshaving.
- fine wines, paintings, krugerrands, classic cars,