Understanding Investment in Tally
What is Investment. When a person or businessman invests his money in such a place where in the coming time, he can get more money in return for his money, it is called investment. In simple language, investment means getting more capital in return for your invested capital is called investment. And the more money the investor gets on the money invested is called return of investment. If you have bought gold of 200000/- today then it is called investment and if you sell that gold after 6 months for 250000/- then 50000/- will be (ROI)return on investment for you. Meaning it will be 50000/- (ROI).
What are the 4 types of investment in Tally Accounting
Friends, when a person or company invests in some place, then he gets the benefit of that investment only in 4 ways which are shown below.
4 ways of getting return on investment
1. Capital appreciation :- In this investment the value of capital of any investor increases.
2. Interest on investment :- If the investor is getting interest on investment. like FD in bank
3. Dividends :- If you have held the shares of any of your company and you get benefit from it.
4. Real estate :- Rent received on investment in real estate.
Apart from these, there are many such places where a person invests like plot purchase. Load given to other person, FD in Bank, Gold Purchase, Schools, bit coin and many such places where investments are made by any company or person. But all these investments are somehow related to the above mentioned 4 types.
Examples of investment in Tally
The meaning of the word investment is to increase your money, no matter what kind of investment is done for it. When a person invests in some place, then that person invests only to increase the capital. He wants that he earns capital from the amount invested by him and can get maximum benefit by re-investing the earned capital. I am giving you some examples of investment.
1. FD (Fixed Deposit) – Many people get FD (fixed deposit) done in the bank, due to which they get more amount in stipulated time. And if he gets the FD of the amount received again, then his capital increases.
2. Loan given to other person :- If a person has the job of giving money on interest and if he gives interest also on interest, then gradually his capital will increase.
3. Schools:- When someone opens a school, he invests only to earn money so that he can get money through fees in the coming time.
4. Gold purchase: – Big people often buy gold and keep it so that in the coming time when the prices of gold increase and they can get more amount by selling gold.
5. Plots: – Investors take plots in urban places and after some time sell them at higher prices so that they can get more profit. Have the highest ROI on plots. Because their prices are increasing day by day.
6. Shares: – To earn more money, people also buy shares and whenever the prices of shares become high, they get profit by selling.
7. Land :- People also buy land to earn profit. So that in the coming time when the prices of land increase, it can earn more profit by selling them.
8. Animals:- People also invest on animals to earn money. So that when the animals grow up, they can get more money by selling them for more money.
9. Currency: – Many people also buy currency. The reason for buying currency is that in the coming time, if the value of currency is high and if they sell it at the right price, then they will get more amount.
What is Return on Investment?
What is ROI and what is the full form of (ROI). Friends (ROI) means return on investment. Whenever a person or company invests in some place, they always do it only to get more return. And when any investor gets the return of that investment in exchange for the amount invested, then it is called return on investment (ROI) in simple language. But it is not necessary that a person invests and he can get his return in return for the investment. It depends on where the person is investing his money. Therefore, before investing anywhere, get complete information about it.
Why Understanding About Investing for Investors
It is also important to explain about investment because when you are investing in a place where you will not get any kind of benefit from that investment in the coming time, then you should not waste your money by investing there. If you have the right information about investment then you will be able to invest your assets in the right direction and get more profit. Any businessman or person must be aware of where he should invest and where he should not.