If you are looking for capital appreciation you may select an instrument that

If you are looking for capital appreciation you may

This preview shows page 112 - 118 out of 217 pages.

– If you are looking for capital appreciation , you may select an instrument that aims to provide capital growth over the long term. In this case, a suitable option can be an equity fund .
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STEP ONE: DETERMINE YOUR INVESTMENT PROFILE Liquidity Liquidity refers to the ability to quickly convert an asset or security or an investment into cash at the marketplace, without significantly affecting it’s price. Real Estate, Commodities, etc are usually considered illiquid investments, while cash at bank or with mutual funds, etc are generally considered to be fairly liquid.
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STEP ONE: DETERMINE YOUR INVESTMENT PROFILE Risk Risk and reward is the classic investor’s balancing act. It is wise to start your investment journey carefully in order to properly assess your tolerance. Your risk tolerance level is a key element to defining your investor profile. If your objectives consist of earning regular income and preserving your capital and high returns are not your priority, a portfolio of low-risk investments that provide stability may be the perfect solution for you. If, however, you are building a retirement nest and investing over the long term, you may want to increase the risk level of your portfolio to boost its growth potential. The higher the risk you take, the higher returns you could potentially receive, but the more chance you have of your investments losing value, fluctuating in value, or failing entirely. With a low-risk investment, you generally know the range of return you will receive right up front but compared to riskier investments, like equities, the return is not very high. The risks come in two types: Volatility: The possibility that the value of your investment will fluctuate in either direction.
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STEP ONE: DETERMINE YOUR INVESTMENT PROFILE Current Level Of Wealth Your current level of wealth helps you determine the level of risk you can tolerate in your investment portfolio. Investors whose investment portfolios are a small part of their entire wealth are in a better position to tolerate fluctuations in the value of their portfolios. Knowing the answers to these questions forms the basis of your investment plan and will help you decide which investments and Funds are likely to give you the type of returns you are looking for.
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STEP TWO: CHOOSING THE RIGHT INVESTMENT Financial Goals Come In All Varieties. So Do Our Solutions. Investment planning is the most reliable way to build and manage an investment portfolio to achieve that successful financial future you envision. That is why we work closely with you to understand your needs and suggest investment solutions that will take you a step closer to your dreams.
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STEP TWO: CHOOSING THE RIGHT INVESTMENT Solutions That Fit Your Needs Various Investment Funds and products are available for the clients to achieve their investment goals.
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