In our broad spectrum of society with varied culture and Age, the capacity to invest and the risk taken will differ.I am told that we Indians are among the best in saving and we save upto 30% of the earning on an average. So where is all this saving going and what is the difference between our saving pattern and that of the other(developed) Nations, which is better.

We may have different generations presently investing differently for different requirement(mind sets). The latest generation has caught on the western trend of plastic Money and credit .

We are also aware that a major part of the savings goes in to real estate. And that is reason how most of the Older generations were able to provide own homes.

Gold has always been our favourite and we are a large consumer of this metal. So far the rise has been steady and many were able to hedge their savings by investing in gold.

Fixed deposits and debentures are also available and are as good as no risk if chosen carefully. The older generation would however prefer the Post office though. The Government Bonds are also good for those elders who choose no risk, here only if interest rates rise they do not gain.

I know that by now though there are other major Investment options available many will be thinking of the stocks and the risk.Liquid funds and the Money market are by far larger than the stock market but it has always been the stock markets that have got the attention.

Short term trading (buying and selling shares) is nothing short of betting as we will be one with the many thousands there trying their luck with little or know knowledge. One should always be aware of the risk and the company which they wish to own (partially a share) and then be in a position to say come what may I will hold the share for a minimum period. There are some instances where sound companies have paid very rich dividend and Growth.

Mutual funds is also one option for those who would like to leave the finance to the experts for a small fee. The beauty lies in the periodic monthly Investment where a fixed sum gets deposited every month and shares for the said amount are purchased by the Company (Mutual Fund). so when the market falls actually more number of shares get accumulated in your account which you may sell at a higher rate when the market improves.

So what is the difference between doing the purchase of shares by your self ? Good question only you need the time and expertise and you will save the Allocation fee that is charged and the exit load that is still applicable... as you are aware entry load has been abolished....Shanks to SEBI.

In case you have anything to say or add please let me know. I have not mentioned Agriculture since I do not know much about it.