If you are planning to get into the area of investment, you might need to take into consideration a few factors and thoroughly think about them. One of them is the sum of money you're willing to invest. Whenever you put your funds on mutual funds, stocks, bonds, or options, you will need to have a specific amount so that you can invest in a unit or open an account.
When it comes to financial investments, two forms of units are usually traded out there - short-term investments as well as long-term investments.
The primary difference between the two is that short-term investments are meant to give large returns in a relatively shorter period of time, whereas long-term investments are supposed to become mature for many years or so and features a slow but progressive improvement in return.
If your aim as an investor is to boost your wealth or keep the purchasing power of your capital over a period of time, then it's vital that your investments must grow in value that somehow keeps up with the rate of inflation. Owning a good mix of equity shares and property investments might well be a good long-term strategy in comparison to having just fixed interest investments.
You must have an investment portfolio that is spread over numerous types of investment instruments so as to efficiently minimize your risk. It is an example of application of the phrase "Don't put all your eggs in a single basket." The many investment products available these days are becoming more and more complex as large and institutional investors increasingly try to outdo one another.
As an individual investor, you simply need to invest on something you feel comfortable with and never on investment products that you do not comprehend. You should be clear with your investment criteria since it is vital in weighing your options. When you are uncertain, the ideal strategy is to find helpful advice.
When it comes to financial investments, two forms of units are usually traded out there - short-term investments as well as long-term investments.
The primary difference between the two is that short-term investments are meant to give large returns in a relatively shorter period of time, whereas long-term investments are supposed to become mature for many years or so and features a slow but progressive improvement in return.
If your aim as an investor is to boost your wealth or keep the purchasing power of your capital over a period of time, then it's vital that your investments must grow in value that somehow keeps up with the rate of inflation. Owning a good mix of equity shares and property investments might well be a good long-term strategy in comparison to having just fixed interest investments.
You must have an investment portfolio that is spread over numerous types of investment instruments so as to efficiently minimize your risk. It is an example of application of the phrase "Don't put all your eggs in a single basket." The many investment products available these days are becoming more and more complex as large and institutional investors increasingly try to outdo one another.
As an individual investor, you simply need to invest on something you feel comfortable with and never on investment products that you do not comprehend. You should be clear with your investment criteria since it is vital in weighing your options. When you are uncertain, the ideal strategy is to find helpful advice.
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