Saturday, June 7, 2014

How Investments Choice Made By Investors


Investments are so essential for every individual because people are like do savings further investments by designing the portfolio (combination of assets), they are so many kinds of investments instruments around the world, there are the people who are receiving high profits by investing low amount but at the same time you can find people who are taking low profits or returns by investing in high investments, so this purely depending on how you consider,
1. Risk factor
2. allocation of the fund by doing diversification
3. selecting duration of investments
4. selecting from the best scripts from the right category
5. deciding the profit margin at the same time ready to bear loss there is one great formula,
A) the person who takes highest risk = possibility gain either high return high loss
 B) the person who takes lowest risk = possibility gain either low return or low loss examples for the above (A) investing venture capital (investing new innovative project works) buying equity shares. examples of the above
 (B) Bank deposits debentures commercial papers Bonds.

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