Tagged: dont put all eggs into one basket

INTRODUCTION OF INVESTMENT

First and foremost, I would like to discuss what is investment is all about. Investment is actually where we putting our money $ or capital into financial instrument for some period of time in expectation will earn some additional income or gain. Shortly it can be said as money make money.

Hence, when we decide to invest, what should we do next is to have proper planning in investment. This step comprise a few steps below:

1. Identify your goals and time frame in investment.

We should identify ourselves what is our goals in investment. Is it for our short term, medium or long term investment.

2. Asset Allocation-Choose the best investment suit you.

There are various way our money can be invested. It can either be we invest our money in mutual funds, stocks, bonds, money market, fixed income, real estate investment, FOREX or any other alternatives of investment.

3. Risk Consideration.

Please note that investment involve some risks. We cannot expect that our investment do not have any risk at all. As investors we should know the concept of high risk high return.
The more risk involved in our investment the more additional income we would earn in return. Different investment would be different risk involve in our investment. It could be interest rate risk, currency risk, market risk, liquidity risk and so forth.

4. Determine amount of money and how often would be invested.

How much we would invest is depends on how much we afford to put aside our money for investment. Please do not involved in loan financing if we cannot afford to bear the risk in borrowing. In addition, we can consider our investment can be in lump sum or we can invest it periodically i.e. monthly, quarterly or yearly.

5. Finally, choose the best investment company.

Once you review above 4 steps the next step would be choosing the best investment company. Please ensure the investment company is authorized dealing in this investment, well known and established. Do not believe in any unfamiliar name claiming that they are one of investment company dealing in our country. Please make some research of company background before you put your money into it.

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