The best way of doing investment is to save few amount from your expanses and put portion of saving in your investment but majority of people don't have funds available for investment. As a result they opt to take loan for the investment. Now, the first question comes in mind is this a right choice to take loan for investment.
Straight answer of this question is Yes and No. Strange. Not at all. Actually it depends upon the type of loan you take for investment. If you take interest free loan from family members or friends, it is not a bad option as long you have emergency funds available in your holding. So, in case you face the loss you can return borrowed money from your emergency investment. Same way taking loan on lower interest rate is not a bad option either but the condition remains same you have some backup emergency fund available, so that you may pay your instalments in time even you observed loss in your investment.
Before investment it is important to do your own research about the project suitability for investment. You must have prior knowledge about the project before jump in to project. Never invest money either your saving or loan amount if you don't have know how of the project. First develop your skill and learn the art than invest in any project.
It is a fact that risk is associated with every investment. So invest at your own risk. The best option is to spend only those money which you can afford to loose. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.