12-04-2013, 04:00 PM
Indian Financial Scene
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Introduction to the report
Savings part an important part of the economy of any nation. With the savings invested various options available to the people the money acts as the driver for growth of the country. Indian financial scene too represents various avenues to the investors. Through certainly not the best or deepest of markets in the world it has reasonable options for an ordinary man to invest his savings.
One needs to invest and earn return on their idle resources and generate a specified sum of money for a specific goal in life and make provisions for an uncertain future. One of the important reasons why one needs to invest wisely is to meet the cost of inflation. Inflation is the rate at which the cost of living increases.
The cost of living is simply what it cost to buy the goods and services you need to live. Inflation causes to money lose value because it will not buy the same amount of good or service in the future as it does in now or did in the past. The sooner one starts investing the better. By investing early you allow your investments more time to grow, where by the concept of compounding increases your income, by accumulating the principle and the interest or dividend earned on it, year after year.