It is observed that Investment advice is easy to give but hard to follow. When I give investment advice majority of Investors ask three questions in sequential order
(1) What benefit Investment will give?
(2) How to do Investment?
(3) Why I should do this Investment?
Simple question to these Investors is –
“Any business can give you profit day one?”
“In any Job will you get salary in advance?”
You need to work hard and give your time to earn money in any job or business. Similarly Investment management demands work and time to give your good return. But today we want everything urgent.
Today every investor think for profit/capital appreciation before doing investment that’s why they ask question in following sequence.
(1) What benefit investment will give?
(2) How to do Investment?
(3) Why I should do this investment?
But I think we should reverse the sequence of this questions.
(1) Why should I invest money?
(2) How to do Investment?
(3) What benefit investment will give?
(1) Why should I invest money?
First you need to decide that for what purpose you are investing this money. i.e Goal. Your goal of investment could be retirement, emergency fund, education, health care etc.
(2) How to do Investment?
Second task is to select asset class for investment. You should select this asset class based on various parameters like expected return, investment capacity, future need and your knowledge about this asset class.
(3) What benefit investment will give?
Now another important question is that what capital gain this investment will give. Answer of this question depends upon selection asset class. Before investing money you should find out expected rate of return.
Today it is observed that investors hardly do long-term planning they invest their money blindly just by following tips or advice. They never examine what are the chances of capital appreciation in asset class. This type of investor always suffer badly.
As a successful investor you should always check all the aspects of investment avenues before taking investment decision. To help you out we are herewith 20 Investment management strategy
20 Investment management strategy
(1) Start Early
(2) Take help of Financial planner
(3) Select simple option for investment at initial stage
(4) Set SMART goal before starting investment
(5) Make yourself aware about Investment avenues
(6) Keep a separate investment account
(7) Keep Target achievable
(8) Think of reinvesting return automatically
(9) Keep a close watch on Investment
(10) Start Investment at smaller scale
(11) Avoid investment in Stock Market at initial stage
(12) Initially keep limit on your investment
(13) Develop habit of investment
(14) Find out In and out of asset class
(15) Carry out pre-investment study
(16) Safeguard your investment
(17) Make Emergency fund before investment
(18) Select systemic investment and avoid haphazard investment
(19) Pay your debt before making investment
(20) Keep a close watch on Inflation
Follow this Investment management strategy and I am sure you will be successful investor.
Do share your views on above!