When should we start Investing?
The sooner one starts investing the better. By
investing early you allow your
investments more time to grow, whereby the
concept of compounding increases your income, by accumulating the principal and
the interest or dividend earned on it, year after year.
The three important rules for all investors are:
§ Invest early
§ Invest regularly
§ Invest for long term and not short term
Important point to remember before investing
Before making any investment, one must ensure to:
1. obtain written documents explaining the
investment
2. read and understand such documents
3. verify the legitimacy of the investment
4. find out the costs and benefits associated
with the investment
5. assess the risk-return profile of the
investment
6. know the liquidity and safety aspects of the
investment
7. ascertain if it is appropriate for your
specific goals
8. compare these details with other investment
opportunities available
9. examine if it fits in with other investments
you are considering or you
have already made
10. deal only through an authorized agent or broker
11. seek all clarifications about the
intermediary and the investment
12. explore the options available to you if
something were to go wrong,
and then, if satisfied, make the investment.
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