Investors Perceptions in Multi Class Society

Abstract

In common terms, investment has been defined as the process of investing newlinemoney for future benefits. It is something in which money is devoted with an newlineexpectation that it will yield certain benefits in future1. This means that the newlineinvestor who allocates his funds amongst such securities or options expects newlinethat the value of the future benefit of the investment, known as return, will be newlineof an amount which is higher than the original value of the money for which newlinethe security was bought initially. In economic terms, it refers to purchase of newlinesuch goods which are not consumed in the present but will be consumed in newlinefuture2. On the other hand, in terms of finance, it implies purchase of a newlinemonetary asset with an expectation that it will provide certain future benefits3, newlinei.e. it will provide certain returns in future or its value will appreciate, which newlinecan be realized by selling it off when it actually happens. In can include newlinepurchase of stocks, bonds, real estate property etc. A very important and newlinehighlighting feature of investments states that the returns on any investment newlinedepend very much upon the duration for which the asset has been held by the newlineinvestor, as well as upon the risk associated with it. An asset with a higher newlinedegree of risk always has a better potential of earning higher returns4 and if the newlineinvestor holds such securities for a long period of time, he can afford to take newlinemore of risks and thus has chances to make more money out of it. Another newlineopinion states that investment actually means putting one s own money to newlinework for him5. One who wishes to earn more money is required to work more, newlinebut this also has a limit. One cannot increase the working hours or stamina to newline3 newlinework more and more after a certain limit. In addition, to enjoy the earned newlinemoney, one also needs to find out some leisure time for himself and his newlinefamily. Since a duplicate cannot be created to work on one s behalf, he can put newlinehis money to work in place of him or work for him simultaneously as he does newlineso. This can be done through investment.