TVM is the concept of the money in the present situation is worth more than the same amount in the future. This variation is due to potential earning capacity. The fundamental concept of finance is that money has a time value attached to it. Based on three parameters, that is inflation, opportunity cost and risk, time value of money is evaluated. Money can grow only with investment; delay can cause an opportunity lost. There is always an uncertainty and holding the amount is always a risk which can go out of hands because we can't predict the next moment. Consider an example of buying one gram of gold which is 4000 INR as of today's value. There are chances that the value of gold can be more in the next two months, but it can decrease as well. Understanding the concept can help investors to decide what to do with the money. Investing helps in earning interest or capital gain. The topic can be understood better from the PowerPoint presentation.

Khyati Khatri

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