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Unit 1: Basics of Investment

13. ..................................... are willing to invest in equities with a long-term view and are not Notes
bothered by short-term fluctuation.
14. .................................investors tend to be up to speed on all financial aspects of their life.
They seek help mainly with a view to enhance their returns.
15. ..................................... investors are most likely to have started investing early, to put
enough money into their investments and to invest regularly.

Task Conduct a survey by getting a questionnaire filled by various investors on the type
of investment product they invest into and the duration of their investments.



Case Study A Long Time Ago when I was a Kid

n one sunny day that I still have fond memories of my father came home in the
evening with a toy pig. I turned it around and discovered that it had a hole in its
Oback. My dad announced that it was my 'Piggy Bank'.
He fished out a 05 paise coin from his pocket and instructed me to put it through the hole
in the pig's back. I did it eagerly, expecting the pig to start walking. It didn't walk but my
father patted me on my back and said,
"Son, this is your first saving. I will give you 05 paise everyday and when we have
collected ` 50 we will go to the bank and get you a savings account."
Savings! Suddenly a new activity had begun in my life that I understood nothing about.
My Dad noticed the puzzled look on my face. He scratched his head and suddenly a
meaningful look came in his eyes. I think he remembered the ant menace that my mom
had been complaining of for the past few days. He showed me the ants that were carrying
grains in a line to their hiding place.
"The ants are carrying grains and saving it for a rainy day," he said. He took out my World
Book Encyclopaedia and showed me various other animals that save food for a time when
they may need it.

"You know that I go to office to earn money for all of us. But when I turn 58 years, I will
have to retire and stop going to office. We will need money to buy food and clothing even
after I retire from my job and stop earning. I need to save now, so that I can pay for our
food and clothing later."
He explained.
"Similarly, you can save the money I give you now to buy a good book or a paint box
later," he impressed upon me.
That was my first lesson in 'saving'.
A few years later I learnt in my class that all of us have two choices. We can consume now
or can consume later. Hence, savings is just postponing consumption.
Does it then mean that only what we consciously keep aside for a rainy days is called
"saving"?
Contd...

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