How conservative do you need to be with your investments?
How secure is your investment? What will happen when the market
dips just at the time you need to encash your investment?
Here are a few do's and dont's to consider before you
invest your money.
Use every source available
to gather knowledge:
Spend time in increasing your knowledge. It will pay dividends later.
You owe it to yourself to know every detail about the type of investement
you are going in for. Read books, browse the Internet, acquire information
from the best and most reliable sources.
It is very important to invest in diversified portfolios:
Keep your investment options open. Include, in your portfolio, different
asset classes such as property, shares and fixed interest. Do not
put all your eggs in one basket.
If you are investing globally, you should take into account the
economy of different countries, their present global cycles and
You should have long term strategies:
Your investment may take a long time to bear fruit. When going in
for a long-term investment, ensure that you are ready to wait out
the period. A longer wait could mean better returns.
Stucture your income and investment:
To achieve high goals it is equally important to structure your
income and investments simultaneously. This strategic structuring
only will help you in achieving your aims.
If you are a beginner:
Start conservatively and build your base around Blue Chip shares
and gain experience from this. Investing in reputable managed funds
is also an excellent way to build a diversified portfolio, without
selecting specific securities. Consult financial experts or advisors,
if you are really seriously thinking about multiplying your money.
Invest in high quality and technically sound companies, but get
up-to-date information before you invest.
Points to ponder:
net asset position
ways to accumulate wealth
income needed at retirement (seven times your last salary invested
is the general formula).
a financial planner.
By : Sharmistha