by the UTI, the LIC or Post Office National Saving Certificates. Saving is done for purchases and emergencies while investment is being done for creation of wealth. 1st Jan 1970 Aggressive Growth: Investors who seek to The credit risk associated with large CDs depend directly on the credit worthiness of the financial institution that issue them. Bank deposits are highly liquid and can be encashed anytime. If his analysis is correct, he may be able to sell the futures contract for more than he paid, within a short- to medium-term period. In the second type of bidding, return required is not specified and the one determined at the auction is received on maturity. Aggressive Growth: Investors who seek to satisfaction of possession of such assets. For Gambling also Money market is distinguished from capital market on the basis of the maturity period, credit instruments and the institutions: The money market deals in the lending and borrowing of short-term finance (i.e., for one year or less), while the capital market deals in the lending and borrowing of long-term finance (i.e., for more than one year). One must have the courage to make decisions when the conditions are unfavorable such as panic , despair or optimism. garment, and refers to the act of putting money or other resources into other’s We will study the following financial assets: Cash is just as the word suggests. 3. So it is very important to understand the difference between Investment, speculation and gambling. investment decision will be one, which has the best possible compromise between fifty. This is also defined as the act of placing funds on a financial vehicle with the intention of getting satisfactory returns over an amount of time. In case the return specified is too high then the T-Bill might not be issued to the bidder. Following chart will clarify the how investment and speculation are different. In case of Many people do not differentiate between the following terms when they invest their hard-earned money in different asset classes, particularly in stock market and often get confused between; We often use the word savings and investment interchangeably, while both are different and both are necessary to secure our future. Money market consists of: The need for money market arises because of the immediate cash needs of individuals , corporation and govt do not necessarily coincide with their receipts of cash. Treasury bills are available for a minimum amount of Rs.25K and in its multiples. difference between investment and speculation. Real returns are returns after taxes. Although there may be some superficial similarities between the two concepts, a strict definition of both speculation and gambling reveals the principle differences between them. The degree of risk is small in the money market. The money market meets the short-term credit needs of business; it provides working capital to the industrialists.