Stocks, Forex and Other Money Matters

What’s the difference between savings and investment? The simple definition is savings have very little risk with low limited returns, on the other hand, investments provide the opportunity for higher returns by managing risk.

By savings in the banks, you may earn interst and you feel good and secured as you watch your money grows overtime. But hang on , if you factor in inflation you realise that you actually have negative growth.

Alternatively, investment may provide income and capital gains with proper management of the risk involve in any form of investment. Investment comes in all sort of categories of investment assets such as Money market, Equity, Bonds, Derivatives Unit trust etc…..

There are two types of returns that can be derived from investments, that is income and capital gains. While income is derive from your investment in the form of rental or  dividends, you get capital gains from selling the investment asset for a profit.

Finally the decision to choose between saving and investment lies within individual investment preference. While both vehicles provide risk and returns, the choice is up to the individual to find the one that suits their profile, whether risk averse or otherwise.

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