Thanks to good savings habits you have built up savings. It’s time to plan and invest your savings wisely so your money can work for you and increase in value.
Start investing with an aim to create wealth and stability for yourself and your family. Here are some points to consider before starting to invest:
Think about your “investment goals” e.g. to grow your money, gain tax benefits, have a comfortable retirement. Then consider “investment conditions” including the risk level you will accept, the returns you expect, the period you will invest. These will enable you to choose the most appropriate investments for yourself.
Know investment types
Explore and understand characteristics, risks, returns, benefits of investment alternatives. These are some examples of how you can successfully manage your investment portfolios and achieve your investment goals.
Know investment situations
- Prefer to gain high returns and able to accept high risk “Stocks” may be your answer.
- Prefer to accept lower risk though not gain much high returns “Bonds/Debentures” may be more suitable for you.
- Prefer to gain good returns based on diversified risks “Mutual Funds” of several different types may be another investment alternative for you.
Regularly follow up economic and political conditions that may affect your investments so you can set your strategy and carefully manage your investment portfolio as market situations vary and you can appropriately allocate your money to other investment alternatives generating better returns over time.
Know investment diversification
You should not concentrate all or almost all of your money in the same investment products or assets carrying the same risks but should diversify your investments – this will help reduce overall risks.
Moreover, you will need to assess and review your investments regularly because it’s your money and the returns from investments will also be yours. If you find something is not as planned, you will need to urgently adjust your investment portfolios so as to get the returns you expect for you and your family.
Invest wisely for an opportunity for wealth creation!!