Investment in the money market is the best way to save your money. However, you need to know what type of investment you should do in the market. Here the choice of the correct money market is also necessary. There are options like the mutual fund, equity, commodity, NPS and others. You have to understand what type of market can offer you the most profit.
Relationship Between The Market And The Investment Type
There is a close relationship between the kind of investment you wish to do and the type of market you wish to choose. Both depend on each other. For example, if you would like to get profit at a slow run but a huge amount then mutual fund investment is good. In case of small but regular investment, you can consider stock market.
This is the reason you must understand the basic features of money market investment in India before you find a cheapest online stock broker.
Type Of Investors
According to the investment experts, there are different types of investors present in the market. Their investment pattern or profit goals define them. Each person has different purpose of investment.
• Those that place regular buy and sell orders in the stock exchange to earn the return on a regular basis are called the active traders or investors.
• Those who are interested in long run investment bur the shares and then let them be for years. They wait for the high in the market and then sell those shares to earn handsome money from the market. They are called the passive investors.
• Apart from these, there are some investors who plan for their retirements. They invest in the mutual funds and the stock market for a pretty long time. They get the money when they get retirement from their jobs or business and take that money out of the market to have a secured financial life after retirement.
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