Guidebook to Saving & Investment

A Complete Guide to Savings & Investment PDF

The basic Economics 101 class topics include savings and investment, but their clear and conceptual understanding still lacks in many.

This savings and investment PDF covers a range of topics such as financial instruments like Savings Bank Accounts, FDs, Post Office Savings Accounts, Public Provident Fund Accounts, Mutual Funds, Equities, and many more.

The PDF is divided into 6 parts, and each part has a few sub-parts.

Each sub-part is followed by the ELM Mantra, a box that quickly helps recapitulate the salient features of the instrument.

How Does the Banking System Work?

A bank account is an account maintained by a banking institution, in which it records financial transactions between the bank and the customer. In India, bank accounts are primarily of four types- Savings Bank Account, Current Account, Recurring Deposit Account, and Fixed Deposit Account. Current Accounts don’t earn any interest, hence they haven’t been discussed here.

What are the Various Pension Schemes, Post Office, and Small Saving Schemes?

Schemes like NPS (National Pension Scheme), Post office recurring scheme, Public Provident Fund, Sukanya Samridhi Yojna, National Savings Scheme, Kisan Vikas Patra and Pradhan Mantri Vandana Yojna are a few of the most popular ones you should know about. Understand each one of them in detail through this savings and investment PDF.

You can also check out our blog to understand more about these schemes in detail.

What are Some Other Investment Schemes?

What do you understand by terms like the rate of returns, risk involvement, and tax implications on various investments?

Get answers to all these questions in detail from our Guide to Savings and Investment PDF.

Also, check out our other E-books on stock market and finance as well!

Frequently Asked Questions (FAQ)

1. Why are savings important?

Saving money helps you build a financial cushion for your future needs and unexpected emergency expenses. Achieving goals becomes easy and stress doesn’t hurt you in your tough times. It makes your life more secure and manageable.

2. What is savings investment?

When you set aside some money for your future needs it is called savings. While investing involves using that money to grow over time. The purpose of savings is short-term needs, emergencies, and smaller purchases. And the purpose of investment is long-term wealth building, retirement planning, and achieving other financial goals.

3. How are savings and investment related?

Savings and investment go hand in hand. When you save some money by setting aside a portion of your income it is called savings. Then, you invest that saved amount to earn returns which is investment. Without saving, you can’t invest; and without investing, your savings won’t grow effectively.

4. Which savings scheme is best?

The best savings scheme depends on what your goal is and how much risk you are willing to take. Based on that you have to research an appropriate savings scheme that fits you best. However, in India we have some popular and safe options like FD, PPF, EPF, Mutual funds, SCSS, Recurring Deposits, and many more.

5. What is the best investment book to read?

Some top books on investment, stock market and trading are:

• Rich Dad Poor Dad by Robert Kiyosaki
• The Psychology of Money by Morgan Housel
• The Intelligent Investor by Benjamin Graham