HOW TO INVEST PROPERLY

 


INVESTMENT

Investment is the dedication of an asset to attain an increase in value over a period of time. investment requires a sacrifice of present asset  such as time, money or effort.

Purpose of investment

The main reason for investment is to generate return from the invested asset,  the return may consists of a gain(profit) or loss realized from the investment. The returns are capital appreciation or depreciation, dividends, interest or rental income or combination of capital gains and income.

Investors generally expect higher returns from riskier investments. when a low risk investment made, the returns is also low. Similarly, higher risk comes with a chance of higher returns.

Types of investment 

  • Mutual fund
  • Bond 
  • Stock
  • Real estate
  • Exchange-traded fund 
  • Money market fund 
  • Share
  • Commodity
  • Insurance
  • Fixed deposits
  • Property 
  • Business 
  • Common stock etc

Investment Strategies 

Investors monitor assets before they buy. When an asset is tend to be devalued (low in price) and information gathered predicts the possibility of the asset to be valued in the future or after analysis the investor sees the faith of the asset in the future before they buy.

How to choose the right investment

As an investor you might have access to a variety of investment options. but just as each tool in a tool bar is suitable for a specific task, the same is also true for investments. for example if you are saving for a financial goal that you need to reach within 6months, you have to prioritize the safety of the amount invested over the potential returns you might get from the investments. that is why low volatility option like liquid funds and fixed deposits are the best investments for short term investment goal.

Comments

Post a Comment

Popular posts from this blog

Every tick of time creates history

Image
ESTHER ESTI In life, we stay and live like time is free. The word "Time" means "Hour, minutes and seconds". We live each and every day to achieve a certain things in life which involves time. Time is precious,time is priceless and every tick of clock creates history. Time management is very important in our life and it matters most both in our happy season and sad moment. Live a life that when in the old age you flashback and smile that I did this. It makes you happy because it's now a history to you. History remarks the time an event occur and teaches the upgrowing ones base on experience of the past which can happen or change of alternative to happening. 
Read more

LIFE AND HEALTH ALERTS NEEDED

Image
Life is a journey which never has an ending. We struggle everyday for survival and to achieve different goals at different intervals. Life has different stages which every existence faces    Let's jump into how to make life easier which are listed as follows;  Spiritually alerted : In this life, Everyone has different belief and religious ways of doing things. Spiritually alert means communication with your God. We always need to be in contact with our God daily on everything we do so as to create a way or prevent us from dangers that occurs everyday. Execercise : This is the most important physical medical treatment for the system. We need to do execercise at least thrice every week to maintain a healthy body and fitness. Medical checkup : In this situation, the medical sector seems to be doing their best but how many people has the cash to patronize them. The issue is as a result of the countries economy which impose inflation on prices of everything. The me...
Read more

Stay healthy and positive in Life

Image
Life has been so much attached by people either to impress or depress some people. Alot is passing through people's Life, so catch the fun while some feel frustrated. We begin to wonder what life is all about.Some begin to question their God what their purpose is all about in this Life. The major issue their is that you can't cuz the cake and have it back. What you sow is what you reap and this is where we got it wrong. Fear the law of karma it really exist in Life. Do to others what you want others do unto you.  God has created everything and given us things to get rich but what matters is how we use ours. So many are inclined with their phone all day that they lost hope about the future. Alot is happening to our life with the new technology system in the century. Crimes, violence, rape case, killings, suicide etc with so many not listed here which we face on our daily lives. To make a living starts with helping people around you. When you put a smile on the people...
Read more