Investment means to give money to other for earning profit, interest , dividend or increase in the given amount. Its process to start from saving and completes after real investing money in business or other works. A person who has cash in his pocket can invest. It is not necessary to know the business. For example Mrs. Arora the wife of Mr. Sham Arora has invested $ 2000 in domestic company. This shows that investment can be done by household women, school going students and old persons.
Now, it is the task to understand that in which we should invest our money. We can invest our money either in securities or in assets. Even many people are investing in foreign currencies for gaining due to change the exchange rates. History reminds us that large numbers of investors have suffered loss of principle amount due to invest in wrong and corrupted company. These companies want to earn money by fair or foul way. So, they attract investors by false advertising online through google adword system. So, it is necessary for new investors to analyze the investment project before actually investing the money online.
They can use capital budgeting technique of finance for better investment out of large number of investment proposals. They can also choose low risky projects of banks, govt. insurance companies and mutual funds of financial companies. They are intermediaries and they invest their collected saving in capital market for earning higher profit. AS 13 has explained its accounting treatment.
Investment in India
For increasing foreign investment in India, investment commission was made in Dec. 2004 by Govt. of India.The Investment Commission has been set up to enhance and facilitate investment in India. The Commission makes recommendations to the Government of India on policies and procedures to faciliate investment, recommends projects and investment proposals that should be fast tracked/mentored and promotes India as an investment destination.
Investment opportunities in India are today perhaps at a peak. Supported by India's natural strengths, India offers investment opportunities in excess of US$850 billion in diverse sectors over the next five years.
