It’s a fresh start, a new beginning, a time to make productive decisions if you haven’t in the past; It is also a time to make your list longer if you don’t already have one.
The question of where you should invest is always a tricky one. There are certain important considerations to make before making an investment decision. The most fundamental thing is to know yourself and identify which investment style fits you. Factors that should influence your investment decision will depend on your age, stage/position in life and personal circumstances, threshold for risks etc.
A 75-year-old widow living off of her retirement portfolio is far more interested in preserving the value of investments than a 30-year-old business executive would be. The widow needs income from her investments to survive therefore she cannot risk losing her investment. The young executive, on the other hand, has time on his or her side and can afford to be more aggressive in his or her investing strategies.
Interesting investments to make this New Year are the mutual funds. Mutual funds are investment strategies that allow you to pool your money together with other investors to purchase a collection of stocks, bonds, or other securities that might be difficult to recreate on your own. This collection is known as a portfolio
Read also: NSIA reports N15.8bn profit FY2014 on good investment decisions
For the average small investor, mutual funds can be a smart and cost-effective way to invest. You don’t have to have a lot of money—most funds will let you start up an investment with as little as N5,000 to N50,000 depending on what your investment goal may be.
Where should you invest?
This is always a tricky one. There are certain important considerations to make before making an investment decision. The most fundamental thing is to know yourself and identify which investment style fits you.
Factors that should influence an investment decision and will depend on a person’s age, stage/position in life and personal circumstances. A 75-year-old widow living off of her retirement portfolio is far more interested in preserving the value of investments than a 30-year-old business executive would be.
The widow needs income from her investments to survive therefore she cannot risk losing her investment. The young executive, on the other hand, has time on his or her side and can afford to be more aggressive in his or her investing strategies.
Things to consider when investing:
1. Objectives: long, medium or short term goal
2. Fund available for investing
3. Risk tolerance
Once you have all these figured out, this automatically guides your compass to your tailored investment choice. (Source: FBN Capital).
