Who doesn’t like to earn extra money? With a good investment plan, you can double your savings and income, but sometimes due to fluctuation in the investment market or due to wrong investing decisions, we lose the money. Therefore,Mehul Mathrani, advise everyone to consider few essential points before putting your savings on the investment market.
Your Age
Needless to say, this is the most important factor that you need to consider before making investing decisions. Investing at a younger age has got its own benefits. For instance, you have the opportunity to wait longer while your investment bears fruit coupled with having a lot of savings to invest. Most people are not aware that if you invest in the younger age you get more time for compound interest to work well for you? In case you don’t know how this works, you must hire a financial advisor to understand everything in detail.
Risk tolerance
Risk factor plays a significant role in investing decision, the higher the risk of your investment, the more chances of getting a higher return. However, not every investor like taking higher risks with their savings.
If you are one of those who can’t take a risk of losing money for the opportunity of getting profits on the investment, aggressive investments in the market such as growth stocks are the best option for you. So, before you make an investment decision, it is advisable to consider the risk associated with what or where you want to invest.
Time before you’ll need the money
Needless to say, most people invest for retirement purposes, but some investments that people make have short-term goals. Another important factor that an investor needs to consider before making investment decisions is the time period that you have before converting your investment into cash.
If you think you do not have much time and you cannot afford a loss, then you must choose some less risky investments such as bonds. Unfortunately, if you lack such expert advice, you should get in touch with an expert investor financial adviser for assistance.
Your investment objective
Why are you looking for investment? Is there any particular reason you have for doing that? Before you decide to put your savings in any instrument of your choice, it is advisable to carefully determine the investment objective that you have.
If your goal is to simply keep your money secure, the investment options such as bonds or fixed deposits that are known for providing moderate returns would be a good option for you. However, if you are seeking higher returns and actually ready to take a risk, you can go ahead to invest in shares or mutual funds.
Comprehension of financial products
Nowadays, you will find a wide range of financial products that provide a lot of benefits, but on a closer examination, they are complex in nature. For this reason, before you make an investment decision, it would be an advantage for you if you do a good research and study about these products before adding them in your portfolio.
A clear understanding of the particulars of these products will not only fulfill all your needs but also provide you with higher profitability. Suppose, if you are only interested in a scheme like life cover, a term life insurance that anyone can avail at a lower cost will be great for you. In case you are only looking for some returns with coverage, then you need policies that cost somewhat more.
Bottom Line
So these are the tips from Mehul Mathrani, you must consider before making your investing decisions.
