HOW TO PICK THE RIGHT INVESTMENT
There is no right or wrong investment. However there is an investment that is right for you per time. It is important to take time to think about what you really want to get out of your investments, the kind of portfolio you want to build, knowing yourself, your needs and goals, as well as your risk appetite.
Understand the difference between right or safe investment. A safe investment is necessarily not appropriate for you at a particular time and vice versa.
The phase of life you are in should determine the kind of investment that you do. If you are young, you can invest in investment option others would consider high risk. Even if you lose your money, you would have enough time to bounce back.
Once you have identified your needs and goals, your appetite for risk concerning your investment, it is safe to start with low risk investment such as Treasury bills. You can then add medium-risk and further consider higher risk as you grow.
Diversification is pertinent for your investment growth. It is a basic rule of investing that to improve your chance of a better return, you have to be open to more risk. A wise way to manage the risk and return is by spreading your money across different types of investments not necessarily in the same sector. You can dance between treasury bills, stocks, real estate, mutual funds and much more, that is what is called diversifying. This way, you can be sure of building wealth and a very healthy investment portfolio, also reducing overall risk in your portfolio.
Seek professional advice. It is alright to get enlightened by professionals in the money management field such as stockbrokers, investment bankers and the likes, what is not alright is when you make your decision solely on what they say to you. Go an extra mile to understand your money, how you want it to grow and where you want to go. Read books, listen to financial podcasts and every other thing that will broaden your investment knowledge.
Quote: We end up in the direction we face; we face the direction we plan.
