You should hold investments till maturity.

Investment may be done in numerous financial products, for example government bonds, mutual funds etc. Investments are always risk driven. There is each and every time some risk associated with any type of investment you may make. “Higher the risk, higher the returns. No risk, no returns”. Never ever should you invest your entire wealth in any one financial product. You should always maintain a diverse portfolio. “Never keep your eggs in one basket”. The money that you invest today in any financial product is going to come back to you with a considerably large amount of interest. Only upon maturity. This is a major reason for holding with you the investment till due date. Another main reason is tax benefits. If you invest you are entitled to tax benefits, if you disinvest ie. withdraw your money back then you can’t claim any tax benefit rather as a consequence you yourself increase your tax liability. One more important reason to hold the investment till maturity is that it may fulfill your short-term or long-term dream. Investment depends on your age too. If you are young, you tend to be more of a risk taker. If you are aged you tend to be more risk aversive. Investment can even facilitate your living after retirement as it gives returns.

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Published by shreyasshrikant

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