ganeral queston

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26 March 2010 what is the difference between deposit(shown under assets side) and investment (shown under assets side)???????????????

26 March 2010 Deposits - means - FDR, Security deposits etc.

Investments - Investment on share of Co.,
Investment on Partnership firm, Investment on Debentures/mutual fund units etc.

26 March 2010 plzzzzzzz clear me its nature...because this is only examples......and thanx


26 March 2010 Deposits are generally kept with short term intention and are easily liquidable.

Investments are generally made on long term intention basis and to gain some control or power in other entity or for making long term benefits like dividend, appreciation etc. Also, they are not kept with the intention of short term liquidity.

26 March 2010 agree with rahulji

26 March 2010 generally deposits have no risk factor and investments have risk factor........ whether i am correct or not?????

26 March 2010 yes, you are correct

26 March 2010 Yes not fully agree but we can say this that the deposits are less riskier than the investments factor because lets say for example if there is a rent deposit with the owner, the he may at the end refuse to pay or pays partly etc,..
So there is not absolutely no risk but yes the risk factor is negligible.


26 March 2010 Scope

Investment have wider scope and include varied type investment

Example Investment in business in the form of capital...

Investment in shares....

Deposit have limited scope compared to Investment

Normally includes all the deposit in the bank and chit company can include this form

Intention

Investment were made with the intention to make the profit

Deposit were normally not with the motive of profit earning...



26 March 2010 Deposit generally earns -Interest
Investment Earns- the profit/loss

Investment- risk is high
Deposit- risk is low



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