The four I's of investment

Whenever wherever the word investment comes, financial organizations or gurus of investment often suggest investment into 4 different pillars.

These particular modes of investments have been there with us since ages. But like every other business aspect, and every other scenario this is being looked upon from a new angle in every decade. But here this is bit of surprise component because this is the year 2020.Probably this year will be written in the history book as the year of Pandemic or lockdown or to beginning of New Era viruses. But whatever it will be written, the fact is all the studies each and every field is been checked upon lights of or the new findings of 2020. Because since World wars and plague attacks, the world has never head came to a standstill like this year. Globally to have been afraid of going out of homes, disrupting the daily life for not only days but for months. And for this particular reason only all the pillars of investment has to be looked upon from this new angle of post coronavirus era, or you can say in future we might see study is being deivated upon just because of COVID 19.

Fundamentally these Investments are mostly advised in

Gold

Let's discuss on gold. The yellow metal as it is often called is not only the most lovable for the feminine gender, but also regarded as one of the most useful investment material throughout the ages. From the valleys of Nile river to the shores of Yang Si kiang, gold has always been recorded as the metal for kings or nobles. If you take a time period of 10 years, 20 years and 30 years, you will find that value of the gold has almost increased by almost adding another 0, at the end of the financial year time frame.

While analysing you should also take the years of recession into the picture and how fast your investment will overcome the same. And particularly in this case, gold doesn't come out as positive as in other cases.

Also as when investing is mentioned, you should also have to have a hand in minimizing the losses. So, the moment gold price start going down, start eating out your profit, then there is no actual threshold where it can go down or stop.

Though one beautiful thing about gold is you don't have to check the prices everyday or keep a tab on it. You can do whatever you want as your daily routine it will give you the definite return, probably one of the best returns of all the four types of investment.

Mutual Funds

Now mutual fund concept is not as old as the other three options. One can always say it is the latest strategy to invest your money.

But the latest always might not give you the best of the strategies. As often each and every mutual fund advertisement says, read the offer document carefully, it is because there are quite a lot of detail understanding what needs to be done, before thinking of the mutual fund investment.  But most surprisingly if you see at any market any country, you will find that most of the investments are done in the mutual fund only.

People are often told that Mutual Fund all the benefits of share market but none of the negatives of it. And here lies the twist. Just think how blatant this lie can be. Because most of the mutual funds are invested in share market only. So is it that when the share market is down, just because you have invested in mutual funds the value of mutual funds will also go down. People say,I know you will be accumulated much more shares... What is the point?
Also whenever your investing in mutual funds you find that what is the transaction charge of 2% to 12% every year to maintain your Mutual Fund. It doesn't matter if you are any swip in or out. Moreover most of the cases if you doing more than five sweets in here then you will be pain heavily for those swips .So ideally, it means that you are actually paying for the salary of the people office for the furniture other things what an organisation supposed to spend, whether you like it or not. It doesn't matter if your Mutual Fund give a 2% return on investment or 15% return on investment you have to pay for the services each and every year. Most surprisingly, even if your Mutual Fund portfolio gives a negative return, still you have to pay for it.
And the worst thing is you don't have a control on the Mutual Funds if it is going for a loss. And just imagine, the case of mutual funds which have a lock in period to invest. So knowingly when your portfolio is making a loss, you have still pump money on top of it, so that once in a long run if your portfolio makes profit, then you can get percentage of it.

Our Gyan Guru says, the best financial people are the financial scamers, and you will never find them they have invested in mutual fund.

Real estate

Real estate as a type of investment is also a good glimmer. You often see the price of real estate increase like anything and always in some part of your mind it comes as a investment option. Let's go back to our time frame of 10 years, 20 years and 30 years. You'll often find that in these time frame the value of real estate has increased phenomenal in exponential graphs. So why not choose this as an option of investment?

Why choosing a real estate property to invest, as an ideal investor we should look into the properties which are low hanging and will bear great fruit in the near future. So ideally you should look into the suburbs of the city or a town to invest in. If you invest properly and periodically over the time your investment should give you a great return
But the worst thing in this kind of investment in the time of recession. Any kind of recession hits the first sector is the  real estate. And when it gets hit it gets hit badly. It starts you bleeding out, and most often not only eat out your profit ,but will incur you heavily loss.
Also the matter of worry is, you don't have a yard mark, to cut down your losses and stop taking any loss on top of that. So systematically, an investment where you don't have a control. It Might go up, it might go down ... And all these depends on phenomenas where you can't even think of control.

Share market and different bonds

You will be surprised to know that every private organisation and even government organisations are heavily invested in share market. But when it comes to coming people, share market is open dreaded. Be it gold, Mutual Fund, real estate all these are direct investment in share market. And if the share market does well, then they all do well. So when you are bullish about a market every sector might or might not be bullish, and that is the same in case of bearish market also. That's why the graphs of share market is never flat line in any country in any market for even 1 minute. Just for an example, Microsoft share in 2000 $48 dollar, in 2010 $45, in 2020 it is around $210. Here just to remind you that, 2020 is a disasterous year for many of the sectors.

It is seen that every 20 to 25 year, there comes a recession and financial history is being Re-written every time. So, If you buy a share for $100 today, down the line 10 year down the line it becomes $500, and again down the line next 10 years it becomes $100 again  .. Then how can you make a profit out of share market? Yes, that is the beauty share market. Not only you can make money when your price of share is increasing, toll free you can make money when the price of a share is decreasing. So external conditions might change the price of the investment, it cannot change your motive of making money out of the marketplace.
Let us take a complete different case. Say that, you have bought a share for $100 thinking the price will go up and we will make a profit out of it. Due to some whatever scenario, the price of the share starts going down. Can happen, have happened and it will continue to be happening. But in share market you have a safe guard against it. You can always buy this year with the condition that is your share price hits $95 then the share will be automatically sold and your loss will be Limited. So basically you have a control over the loss also.
The only thing what you need to do , when you are investing in share market, is you have to keep a tab, almost every other day to safeguard your investment. But all the sensitive good things always requires attention, isn't it?