Things to consider before investing | Fusion - WeRIndia

People invest their money in the market to get high returns. Yet, it is not possible every time to yield good returns.

Hence, being an investor, you should assess certain things before you invest in the market.

• The first and foremost thing is to understand whether the investment works for you. It is essential to understand the basis of the investment while investing your money. If you do not get any help from your existing financial advisor, then hire another person to help you. Or research yourself to know better opportunities in the market.
• Invest with a purpose or goal, not just to make some extra money. It is advised that investment with specific goals help you make proper earning. For instance, if you are investing for your child’s education or to buy a home, then your investment will be strategic. You can claim a tax deduction as well.
• You should be aware of the risks associated with your investments. Then, you can anticipate the returns.
• You must have a clear expectation of how much you would earn on your investment. Or how much you would lose. This helps you plan how much you have to earn to meet your specific goals.
• You should also know how long you should hold the investment. For instance, if it is a retirement plan, then, you can hold the investment until you attain retirement or turn 60 years of age. Similarly, you have to calculate all your investments and pick the best investment.
• Thorough background screening is essential as there are numerous scams reported on investments.
• Be ready by knowing the options if your investment fails. Also, learn about the grievance and redressal mechanisms to use them in unforeseen events.
• Know the exit options, lock-in period, premature withdrawal rules including fees etc. while investing.

Image Credit : Chris Potter ccPixs.com CC BY 2.0

Image Reference: https://www.flickr.com/photos/86530412@N02/8225623016/