The money we bring in is partially spent and the remainder saved for meeting future expenses. Instead of keeping the savings idle we may like to use savings in order to get return on it in the future. This is called Investment. Investment means placing our money to work to bring in more money. We needs to invest to make a provision for an uncertain future, to create a given sum of money for a certain aim in life and to get return on our idle resources. One of the significant reasons why one needs to invest prudently is to meet the price of Inflation. Inflation is the rate at which the cost of living increases. The cost of living is just what it costs to purchase the services and goods you need to live. For example, if there was a 6% inflation rate for the next 20 years, a Rs. 100 purchase today would cost Rs. 321 in 20 years. Why it is important as a factor in any long – term investment strategy to consider inflation this is. Remember to look at an investment’s ‘real’ rate of return, which is the return after inflation. The aim of investments should be to provide a yield above the inflation rate to ensure that the investment does not fall in value. For example, if the yearly inflation rate is 6%, then the investment will need to get more than 6% to ensure it grows in value.
You can also search investment in mutual funds via investir-bourse.com (also known as investissements dans les fonds communs de placement via investir-bourse.com in French).