Five Reasons Which Make Cryptocurrency a Bad Investment
The incredible rise in the price of cryptocurrencies in the past few months has caught the interest of almost every investor in the entire world. Even the most traditional investors have been introduced to the concept of cryptocurrencies. However, not all investors want to invest in it. For instance, Warren Buffet has famously stated that […]
High Yield Bonds
The international bond market is a large and diverse market. There are various categories of bonds that are issued in these markets globally. However, they can be categorized based on their risk-return profile. The safest bonds are issued by sovereign entities. They are considered to be the safest since governments have the power to tax […]
Calculating Free Cash Flow to the Firm: Method #2: Cash Flow From Operations
Now, it’s time to move on to the second metric which can be used to derive the free cash flow to the firm (FCFF). This metric is the cash flow from operations. These types of questions involve a complete cash flow statement being provided as the question and expect the student to derive free cash […]
FAQ’s About Behavioral Finance
Behavioral finance is a fairly recent phenomenon. The development of this branch of finance is not more than a few decades old. This is the reason why there is still a lot of ambiguity about behavioral finance. Investors still have a lot of questions about behavioral finance, which they would like to clarify. This is […]
Framing Bias
Traditional economic theory assumes that investors are completely rational beings. Hence, they react to information in the same way if the content of the information is the same. However, behavioral finance theory seems to disagree with this assumption. According to them, investors interpret information in different ways if it is presented to them differently. This […]
It is human nature to plan for rainy days. An individual must plan and keep aside some amount of money for any unavoidable circumstance which might arise in days to come.
Future is uncertain and one must invest wisely to avoid financial crisis in any point of time.
Let us first understand what is investment ?
Investment is nothing but goods or commodities purchased today to be used in future or at the times of crisis. An individual must plan his future well to ensure happiness for himself as well as his immediate family members. Consuming everything today and saving nothing for the future is foolish. Not everyday is a bed of roses, you never know what your future has in store for you.
Financial investment refers to putting aside a fixed amount of money and expecting some kind of gain out of it within a stipulated time frame.
Planning plays a pivotal role in Financial Investment. Don’t just invest just for the sake of investing. Understand why you really need to invest money? Investing just because your friend has said you to do so is foolish. Careful analysis and focused approach are mandatory before investing.
Explore all the investment plans available in the market. Go through the pros and cons of each plan in detail. Analyze the risk factors carefully before finalizing the plan. Invest in something which will give you the maximum return.
Appoint a good financial planning manager who takes care of all your investment needs. He must understand your requirement, family income, stability etc to decide the best plan for you.
One needs to be a little careful and sensible while investing. An individual must read the documents carefully before investing.
An individual can invest in any of the following:
Financial Investment ensures all your dreams turn real and you enjoy life to the fullest without actually worrying about the future.
Financial investment ensures you save for rainy days. Careful investment makes your future secure.
Financial investment controls an individual’s spending pattern. It decides how and what amount one should spend so that he has sufficient money for future.
Don’t just blindly trust your financial advisor. Read the terms and conditions and go through all the related documents carefully before signing. Check out risk factors, tenure, clauses etc before selecting the plan.
Avoid cash transactions. It is always advisable to issue an account payee cheque in favour of the company rather than giving cash to your advisor. You never know when he disappears with all your hard earned money.
Carefully staple all the related documents and put it in a folder. Keep it at a proper and safe place. Loosing even a single paper might land you in trouble later on.
Make sure your investment plan is the best in the market and guarantees sufficient return in future.
If you plan to invest in property, ensure it is at a prime location and would have takers in the near future. Investing in non approved properties is worthless.
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