Wednesday 19 December 2018

Factors to Consider Before Investing

Investment Management. As discuss previously that in investment; Basic understanding, kind and the benefits that an investment projects generally require large funds and will affect the company in the long term. Therefore, the planning of investments does more thoroughly in order not already embed investments in unprofitable projects. Some things to consider in investing:

Financial Assets (Financial assets)

Profitability and level of risk

Investment decision is a decision or the choice of a scenario of the expected profit rate (expected return) and the level of risk (risk) that is ready to bear. Financiers must carefully be counting on two things. To get a bigger profit, investors should be prepared to bear the risk is great too. Conversely, the lower the risk incurred, the lower level also gains can be expect.


Investment period (time horizon)

Period of investment can determine the behavior of investors in investment activity. Period of investment can be helpful in determining how big the risks which may be incurred. In General, people who invest for the long term a greater risk of managing. This is due to the investment shares are experiencing high fluctuations from time to time. But its average profit rate steady for the long term.

Learn about the character of the

General character of the investor is divided into 3 namely (1) the risk (risk taker), (2) avoidance risk (risk avoider) and (3) neutral. The character of the investment will affect the behavior of the characters in investing and determine strategies
in investing. Usually the risk taker being aggressive and speculative, instead the avoidance risks tend to avoid the news or newspapers that don't clear the source (the rumors) and they always consider are mature and well planned over investment decisions, while those who fall into the category of neutral is generally quite flexible and being cautious (prudent) in taking decisions.

Learn finance

For most people, investing in mutual funds is just part of the total assets. If your investments more on fix deposits, you may be able to take greater risks for bigger profit levels also from investments in mutual funds.

Financial performance evaluation

Select mutual funds base on the profits high. Data histories prove that mutual funds that have a good performance in the past does not always give the same performance in the future. Past performance only shows how someone can invest reaches its destination.

Do diversify

One to achieve a good profit consistently is diversifying or investing in more than one mutual fund. Diversification is a way to control risk because although some mutual funds investing in high risk, when the value of one of the investment
decline, the value of the investment is more likely to go up.

Non-financial Assets (Non-Financial assets)


Sales tax

Any gain or income from various types of investments will always be burden by taxes. Similarly, investment in the form of property. New property investment from tax is impose if the investor makes a profit from the sale of assets. This needs to be consider because tax can greatly affect
the profit potential for you get.

Additional revenue.

Make an investment in the field of property become a source of extra income. For some investors on investment income is widely done by renting one or more units of apartment buildings where they also live there, the income to pay for the cost of maintenance of property rights and pay off the costs behind the name. This is an example of the use of the excess income of the investors to acquire wealth.

A long term investment.

This has been the main source for acquiring wealth. This source can be view from a strategic location and good maintenance; real estate can be appreciate with high prices in a relatively short period of time.

Problem solving with investing.

By way of investing by buying a house or apartment to get more revenue.

Labor family.

The labor of family members is often a major reason by some investors for acquiring labor anyway. For example, managing hotels, restaurants, and others are often own and operated by families intact, each Member's work to their own economy.

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