It’s all about choosing the right investment

Sunday, January 27, 2013

It’s all about choosing the right investment

Knowing where to invest is the toughest part about the investment game. While some people have the resources to hire professionals to explore the markets and take the decisions for them, most of us have to rely on the trends in the market, reading articles on the Internet, asking friends, and so on. Investment options depend on many factors such as your age, how much money you want to spend, what kind of assets you want to acquire, your future plans, etc. Thus, when it comes to investments you cannot use a known recipe and hope for success. 

There is no one-size-fits-all, instead you have to find out what the best option is for you. For example, if you are an inexperienced investor who has utterly no assets to his name yet, the best option for the present time would be to invest in residential flats in Mumbai or any other growing city of India or your native country. Even a single house in an up and coming area, in the city, would be a good way of ensuring profitable returns in the future.

Investments are all about money, and keeping it rolling to bring in profits. Hence, how much money you want to spend is most likely the first question, you must know the answer to. Figure out whether you want to put down a lump sum or would rather be happy with an allocated certain amount each month or year. This figure will depend hugely on your current funds and future plans. According to these figures and your current financial situation you can find funding options such as real estate, equity, bonds, mutual funds, stocks, etc.

You are doing well right now, and you have some disposable income that can be put towards your investments, but what about some years from now? What if you are in dire need of some money next year? Investments can be a gamble at times. This is the reason most investment experts swear by variety of funds. For instance, if investing, in residential flats, in Mumbai, and if you need some liquid cash in the future, the chances of you getting a quick buyer for any of those flats is out of the question. On the other hand if you have invested a substantial amount in gold or silver, you can find buyers for such precious metals at any given point in time, especially in countries such as India and China.

Many of us invest because it seems the right thing to do. According to experts any investment should be done with a purpose in mind. This will assist you to the right investment option and break. For example, if you want to invest your money to ensure that you have the funds to pay for your child’s college education, you may want to first calculate the number of years you have in hand and the amount of money (roughly) you may need. 
Then compare it to the amount you can spend currently and whether you would like to add to that figure in the coming years. This will give you an idea of what your financing options could be and how much risk you might be able to use to reach the profit you need. Keep in mind that even though investments posing higher risks may result in significant returns, they are not always the best choice.

Also, remember now that you are young, you don’t care much about the risks associated with some investment options in the market, but with time this attitude might change.

About the author- 

Samuel Thatcher is an investment adviser and has been working in this field for more than a few decades. Having the experience he has recently discovered the joys of sharing his knowledge with the world through blogs and articles. He also writes about, investing in residential flats in Mumbai, and other parts of the world, and believes real estate to be one of the best investment options today.   

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