Nothing is without risk. Investment too is not beyond the reach of risk. In fact, investment comes with a lot of risk. People who are into this industry need to know about these risks before they make any decision related to investment says
Nothing is without risk. Investment too is not beyond the reach of risk. In fact, investment comes with a lot of risk. People who are into this industry need to know about these risks before they make any decision related to investment says Anouk Govil an experienced investment consultant who works as financial analyst. Be it stock, bond or mutual fund, all investment schemes come with some hazards that can grow with time.
If you are new to this industry and this is your first investment venture, you might be wondering what is investment risk. What can make you face loss? Investment is making a choice of doing something with your asset. The risk arises when you don’t know what result the decision will bring. The value of the investment can rise and you will earn profit. The value might fall as well. In that case you will be in a loss. For this reason, you should be very careful before making any decision related to investment.
Anouk Govil says you should begin slowly. Any hasty decision might get you into a lot of trouble. What you must do is make a financial map. This will help you understand your capability. It is important that you take an honest look at your financial status. You should know what you can or cannot do. This realization will come from the roadmap which you need to draw before making any sort of decision. If you are not comfortable with the process of making a financial plan, you can easily find someone who knows the industry. Someone who has worked with investors will be able to help you draw this map. Of course, this is not something you should absolutely follow. But, this is something you should have before getting started.
There is a thing called comfort zone. Even though this comes with a note of unease as people always advise to go beyond the comfort zone, you must remember that when you are getting started, you comfort zone might be your lifeline. Investment, even if it is personal is not a small task. You need to get used to investment process with slow progression. For this reason, you should be within your comfort zone when you are getting started. As you learn, you should lean on the support of knowledge. When you become confident that you have enough facts and figures, you can give up your comfort zone and go ahead trying something new.
What any experienced investment consultant or financial analyst will tell you is – don’t tie yourself down. It is important to have a backup plan. More than often the first plan does not work. What you think will bring money might fail. In that situation, you should keep other options open. You should think of other investment plans lest the first one does not work. Work with a financial analyst to know the process properly.
If you are serious about investment, you should stash some money aside for the emergency. Frankly, emergency will arise. You should be ready to face the problem day an experienced investment consultant who works as financial analyst. Be it stock, bond or mutual fund, all investment schemes come with some hazards that can grow with time.
If you are new to this industry and this is your first investment venture, you might be wondering what is investment risk. What can make you face loss? Investment is making a choice of doing something with your asset. The risk arises when you don’t know what result the decision will bring. The value of the investment can rise and you will earn profit. The value might fall as well. In that case you will be in a loss. For this reason, you should be very careful before making any decision related to investment.
Anouk Govil says you should begin slowly. Any hasty decision might get you into a lot of trouble. What you must do is make a financial map. This will help you understand your capability. It is important that you take an honest look at your financial status. You should know what you can or cannot do. This realization will come from the roadmap which you need to draw before making any sort of decision. If you are not comfortable with the process of making a financial plan, you can easily find someone who knows the industry. Someone who has worked with investors will be able to help you draw this map. Of course, this is not something you should absolutely follow. But, this is something you should have before getting started.
There is a thing called comfort zone. Even though this comes with a note of unease as people always advise to go beyond the comfort zone, you must remember that when you are getting started, you comfort zone might be your lifeline. Investment, even if it is personal is not a small task. You need to get used to investment process with slow progression. For this reason, you should be within your comfort zone when you are getting started. As you learn, you should lean on the support of knowledge. When you become confident that you have enough facts and figures, you can give up your comfort zone and go ahead trying something new.
What any experienced investment consultant or financial analyst will tell you is – don’t tie yourself down. It is important to have a backup plan. More than often the first plan does not work. What you think will bring money might fail. In that situation, you should keep other options open. You should think of other investment plans lest the first one does not work. Work with a financial analyst to know the process properly.
If you are serious about investment, you should stash some money aside for the emergency. Frankly, emergency will arise. You should be ready to face the problem day