Investing approach based on financial goals
Too often, people jump right in by making huge investments without attaining the required skills to make those investments and also without making investment goals. Investments other than government backed bonds are not always secure and investors can suffer losses with such instruments.
Investments should be based on needs and objectives, there is no point in making wild investment decisions as such decisions often yield unexpected results. So if the objective is to make considerable returns for a secure retirement or buying a home 5-10 years later then one should opt for secure investments such as fixed rate deposits or well diversified mutual funds.
If the financial objective is to make maximum returns on spare money in a short term, then the best approach is to look for high beta stocks. But while investing in high beta stocks, one should be well diversified as such stocks even tumble 90% in falling markets.
comments
Leave a Reply