Reasons For Investment

Main reasons for investing fund are as follows:

1. For Supplementary Income

This is one of the main reason for investing the fund. Investment helps to grow money which helps to supplement the income.

2. To Minimize Tax Liabilities

Investment in life insurance, retirement fund, citizen investment fund etc. offer tax rebate. This minimizes tax liabilities and investors may enjoy tax benefit.

3. Protection From Inflation

Invest is necessary to get protection from inflation because idle fund or money reduce its value over the passage of time. Investment helps to earn nominal rate of return and maintain the purchasing power.

4. Starting Or Expanding Business

Many people invest money to start a new business or to expand their existing business for higher income. 

5. Excitement And Hobby

Some people invest their money for excitement and hobby also by following other people.