
Step Guide to Successful Investment
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Begin Now: Decide to start saving. You are never too old or too young to start. | |
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Pay yourself some money every month: Decide to save a particular percentage of your earnings every single month and avoid going below this amount. Investing regularly matters more than the timing of your purchases. | |
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Don’t forget tax avenues: Don’t evade taxes. Learn how to manage them. Start by checking with a consultant for various tax avenues when you start building your investment portfolio. Don't evade taxes. Learn how to manage them. Start by checking with a consultant for various tax avenues when you start building your investment portfolio. | |
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Don’t forget tax avenues: Don’t evade taxes. Learn how to manage them. Start by checking with a consultant for various tax avenues when you start building your investment portfolio. Don't evade taxes. Learn how to manage them. Start by checking with a consultant for various tax avenues when you start building your investment portfolio. | |
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Never underestimate your insurance options: Use insurance as a buffer so that your dependents have something to fall back on. Or you may opt for a plan that ensures you get a return over time. | |
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Never underestimate your insurance options: Use insurance as a buffer so that your dependents have something to fall back on. Or you may opt for a plan that ensures you get a return over time. | |
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Figure out your investment objectives: Make your investment decisions based on 4 prime considerations; | |
» Level of return expected | ||
» Risk tolerance | ||
» Time Horizon (holding period of investment) | ||
» Liquidity (How convenient would it be to convert the instrument into cash if required) | ||
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Diversification is the name of the game: There is no one kind of investment that is best. There is safety in numbers. Diversify by companies, by industries and by type of investment. | |
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Don’t be tempted by high Returns: Remember, higher the return, higher the risk. | |
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Don’t be tempted by high Returns: Remember, higher the return, higher the risk. | |
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Stay in touch: Review your portfolio constantly. You may suddenly get into debt, the number of dependents may increase or decrease, you may land a windfall, or your risk appetite and circumstances governing it may change. | |