As an investor what are factors of Risk and Return.

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Finance

As an investor what are factors of Risk and Return.

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questionAs an investor what are factors of Risk and Return Ans 1st set of answer as per the US market and 2nd set of answer will be for Indian market scenario Financial Navigating in the Current Economy Ten Things to Consider Before You Make Investing Decisions Given recent market events you may be wondering whether you should make changes to your investment portfolio The SECs Office of Investor Education and Advocacy is concerned that some investors including bargain hunters and mattress stuffers are making rapid investment decisions without considering their longterm financial goals While we cant tell you how to manage your investment portfolio during a volatile market we are issuing this Investor Alert to give you the tools to make an informed decision Before you make any decision consider these areas of importance 1 Draw a personal financial road map Before you make any investing decision sit down and take an honest look at your entire financial situation especially if youve never made a financial plan before The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional There is no guarantee that youll make money from your investments But if you get the facts about saving and investing and follow through with an intelligent plan you should be able to gain financial security over the years and enjoy the benefits of managing your money 2 Evaluate your comfort zone in taking on risk All investments involve some degree of risk If you intend to purchase securities such as stocks bonds or mutual funds its important that you understand before you invest that you could lose some or all of your money The money you invest in securities typically is not federally insured You could lose your principal which is the amount youve invested Thats true even if you purchase your investments through a bank The reward for taking on risk is the potential for a greater investment return If you have a financial goal with a longtime horizon you are likely to make more money by carefully investing in asset categories with greater risk like stocks or bonds rather than restricting your investments See Answer

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As an investor what are factors of Risk and Return.

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As an investor what are factors of Risk and Return.

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