Investments are made on the perspective to get the gain by over the period of time. Aim of investment is to increase in wealth by keeping it safe. There are many ways one can invest his wealth but need to calculate it’s risk and return. The investment must have the qualities of keeping the capital safe along with liquidity. Because when the need arise one can utilise it.
Qualities of good investments
Capital safety : The investment should have the quality of capital safety. The investment should not lose its value over the period of time. It should grow over the period of time.
Liquidity: The investors must in the position to use the investment when the need arises. The investment made by him should be liquid where it can be possible to convert in to cash easily.
Capital growth: The investment should grow over the period of time as the investors can get good return for their long term holdings.
Must consider time value of money : The return which the investor get from the investment should consider the time value of money.
Profitable: The investment need to give good profit in return to the investors for making the investment.