Review:Max9686
With each passing day, there are numerous stocks, bonds, mutual funds etc that demand the attention of prospective investors. It is quite a challenge when trying to decide where you would wish to invest your hard earned funds for better returns.
In order to build a profitable portfolio, an investor must never put all his 'eggs (funds) in one basket'. It is important to stay invested for a combination of short term and long term duration.
A few useful tips as mentioned below would save a lot of trouble in understanding the basics behind investing funds:
- know your financial goals (both short term and long term). As a priority first focus on childhren's education or retirement. Whatever be your futuristic vision, set your goals and have a plan to meet them.
- clearly outline the time required for your investments. If you are not planning your retirement anytime soon or if it is faraway then you must have long term investments, while on the contrary if your retirement is just a few years down the line, then you must have short term investments that will bring spurts of liquidity post retirement.
- determine your tolerance for risk (because of market volatility). In other words how much can you afford to lose ...5% 7% 11% etc. Therefore the longer your investment duration - the bigger risk you can take.
- the future is uncertain, hence when faced with a dilemma...follow the golden rule - ASK / CONSULT a financial expert, to avoid financial pitfalls and get guidance on working with your investment portfolio.
Whatever be your academic background, it is your duty to stay financially prudent for all times to come. There are a whole lot of educational tools, market insight on investment products etc for a first time investor or those who persevere the path to stay invested.
Tips to Build a Successful Investment Portfolio Originally published in Shvoong: http://www.shvoong.com/business-management/investing/2119160-tips-build-successful-investment-portfolio/
With each passing day, there are numerous stocks, bonds, mutual funds etc that demand the attention of prospective investors. It is quite a challenge when trying to decide where you would wish to invest your hard earned funds for better returns.
In order to build a profitable portfolio, an investor must never put all his 'eggs (funds) in one basket'. It is important to stay invested for a combination of short term and long term duration.
A few useful tips as mentioned below would save a lot of trouble in understanding the basics behind investing funds:
- know your financial goals (both short term and long term). As a priority first focus on childhren's education or retirement. Whatever be your futuristic vision, set your goals and have a plan to meet them.
- clearly outline the time required for your investments. If you are not planning your retirement anytime soon or if it is faraway then you must have long term investments, while on the contrary if your retirement is just a few years down the line, then you must have short term investments that will bring spurts of liquidity post retirement.
- determine your tolerance for risk (because of market volatility). In other words how much can you afford to lose ...5% 7% 11% etc. Therefore the longer your investment duration - the bigger risk you can take.
- the future is uncertain, hence when faced with a dilemma...follow the golden rule - ASK / CONSULT a financial expert, to avoid financial pitfalls and get guidance on working with your investment portfolio.
Whatever be your academic background, it is your duty to stay financially prudent for all times to come. There are a whole lot of educational tools, market insight on investment products etc for a first time investor or those who persevere the path to stay invested.
Tips to Build a Successful Investment Portfolio Originally published in Shvoong: http://www.shvoong.com/business-management/investing/2119160-tips-build-successful-investment-portfolio/
