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Investing vs Saving

Particulars

Investing

Saving

Meaning

It is the process of using money in order to make it grow.

It is the process of setting money aside, typically in a bank account to meet emergencies.

Objective

Investment is done to earn returns and for capital appreciation.

Saving is done to fulfill short term requirements.

Risk

Comparatively high

Comparatively low

Returns

Comparatively high

Comparatively low

Liquidity

Less liquid

Highly liquid

Time Horizon

Generally medium to long term

Short term

 

 

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