123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Factors Involved In Investment Decision

Profile Picture
By Author: William King
Total Articles: 365
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

The motive behind our investments is to make money and increase our monetary wealth. With so many factors involved, investment decision becomes a complex one. Small investors often go with their gut feelings when trying to choose among numerous investment alternatives. Big investors use various analyzing techniques. Globalization and the growth of internet have introduced many new opportunities and threats to ponder upon. When investing, you must remember that you are committing your assets for sometime, that is why you need to cover all aspects before making an investment decision.

Expected Return:
The most basic investment decisions revolve around the comparison of expected return and risk involved. No investor will take on higher risk if there is no chance of equally higher returns. Investors strive to reach on the best trade-off point between risk and return which go well with their financial requirements. These expected returns are not always equal to what an investor actually gets after some time. The possibility that actual return will not be the same what they expect is called risk.

Risk Factor: ...
...
There is hardly some form of investment which doesn't involve risk. Government securities come close to be called risk free; but even they have some risks attached to them. Risk actually is the balancing factor of the financial markets. Various types of investment risk exist, such as financial risk, currency risk, inflation risk or capital risk are the most common one. Different investors react differently to these risks. While majority of the investors are risk averse, there are some investors who are seeking more risky ones with expectations of higher yields.

Investor's Hunch:
Every investor will finish off with a different conclusion although the market, economy and all statistical facts and figures are same for everyone. This difference comes from the investor's intuition. Even the deciding process is different, some start from research; collecting lots of information and then analyzing to decide, others start from defining their objectives and then going for the options that suit their needs.

Globalization Factor:
Investors have slowly started to realize the advantages of international investments. Some emerging markets present better returns while other stable markets provide lesser risks. Investors have often conquered risk by diversification, and an international market provides more opportunities to achieve portfolio diversification as compared to a local market. Ignoring global markets for investment is turning your back on a whole new world of opportunities.

William King is the director of UK Wholesale Suppliers, Distributors, Dropshippers & Manufacturers: http://www.wholesalepages.co.uk Wholesale Trade Suppliers, Dropshippers, Distributors & Manufacturers: http://www.dailytrader.com , UK Wholesale Suppliers, Distributors, Dropshippers & Manufacturers: http://www.dailytrader.com/uk/ . He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.

Investment, decision, investments, factors, risk, returns

Total Views: 303Word Count: 465See All articles From Author

Add Comment

Business Articles

1. Seo Services For Small Business Indore: Boost Your Online Presence
Author: ayraphics

2. Women’s Tank Tops, Dresses, And Skirts In Encinitas, San Diego California
Author: Vikram kumar

3. Top Reasons To Use A Local Print Shop In San Francisco
Author: Bay Print Solutions

4. Quaker Oats Data Analytics On Amazon - The Oatmeal Deal Case Study
Author: Actowiz Metrics

5. Dubai Free Zone – A Hub For Business Growth And Global Opportunities
Author: David

6. What Is A Home Loan Calculator?
Author: Shreya Eppili

7. Using An Emi Calculator To Set Your Personal Loan Tenure During Application
Author: Shreya Eppili

8. Extract Wine Pricing Data Across Global Markets For Insights
Author: Den Rediant

9. Why A Tactical Picatinny Rail Forend Takes Your Remington 870 To The Next Level
Author: Slade Street Tactical

10. Powering Your Social Media Growth With Affordable Marketing Panels
Author: Smm Panel

11. Documenting Your Iso 50001 Procedures Effectively
Author: Sarah

12. Powering Progress With Quality Transformers– Kanyaka Parameshwari Engineering Pvt. Ltd
Author: Ojeshwani1

13. Cas No: 85118-00-9 Manufacturers
Author: vasista

14. How To Create Custom Clothing Online Without Compromising On Quality
Author: Guangzhou Beianji Clothing Co., Ltd

15. What Should You Know About Flat Roofing In Barrie?
Author: Ryan Seacrest

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: