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Saving and Investment Video Lecture | Economics CUET Preparation - Commerce

FAQs on Saving and Investment Video Lecture - Economics CUET Preparation - Commerce

1. What is the difference between saving and investing?
Ans. Saving refers to setting aside a portion of income for future use, typically in a low-risk savings account, while investing involves putting money into assets with the expectation of earning a return, often in higher-risk options like stocks or real estate.
2. How can saving and investing help achieve financial goals?
Ans. Saving and investing are both essential for achieving financial goals. By saving, individuals can accumulate funds for emergencies or short-term expenses. Investing, on the other hand, allows individuals to grow their wealth over the long term and potentially beat inflation, helping them reach larger financial goals like retirement or buying a house.
3. What are the risks associated with investing?
Ans. Investing comes with various risks, including the possibility of losing the principal amount invested. Market volatility, economic downturns, and company-specific risks can all impact investment returns. It is important to diversify investments and thoroughly research before investing to mitigate these risks.
4. What are some popular investment options?
Ans. Popular investment options include stocks, bonds, mutual funds, real estate, and exchange-traded funds (ETFs). Each option has its own characteristics, risk levels, and potential returns. It is crucial to understand these options and their suitability for individual financial goals before investing.
5. How can one start investing if they have limited funds?
Ans. Even with limited funds, individuals can start investing by considering low-cost options such as index funds or ETFs. These investment vehicles allow for diversification and are often more affordable than buying individual stocks. It is also advisable to consult a financial advisor who can provide guidance on suitable investment options based on one's financial situation.
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