Hello guys today i want to talk about investment strategies.
An invest can come in different forms and people use a variety of strategies to accomplish a particular goal.
Which leaves this question??
WHAT IS AN INVESTMENT
An investment involves putting capital to use today in order to increase its value over time. An investment requires putting capital to work, in the form of time, money, effort, etc., in hopes of a greater payoff in the future than what was originally put in.Their are a variety of things people would like to invest in such as investing in commodities that is buying and selling physical products.It is considered low-risk type of investment, so if you're new to investing or are very uncomfortably with any risk,these investment option could be a good place to start.Remember Keep in mind that low-risk investments also tend to have low returns.Other investments include cryptocurrency investment,real estate,stock exchanges and many more.
Investment opportunities may vary within countries and the risk may vary as well within the type of investment an individual may choose be involved in.
INCOME
Before one thinks of engaging in an investment his/her major aim is income making thats one of the main reason.
The income made from the investment could be used to serve many purposes which may be of importance to the investor.
OBJECTIVE OF INVESTMENT
While investing or before an investment their should be some objective to have in mind objectives such as safety, income, and capital gains are the big three objectives of investing,there are others objective to keep in mind too like
Tax Minimization
Tax minimization involves all expensives done to the establishment or investment or expense you made on your self this includes meals,transportation,electricity and more and more
You can set a task minimization strategy of meal deduction and maybe cutting low on your eletricity supply a little bit to save cost.
INCREASING VALUE OVERTIME
As time goes and the investment grows as well which would be huge gain to the investor cause the capial he/she used to start must have doubleed more depending on your investment strategy.
Investment the Same As Speculation
The main difference between speculating and investing is the amount of risk involved. Investors try to generate a satisfactory return on their capital by taking on an average or amount of risk. Speculators are seeking to make abnormally high returns from bets that can go one way or the other.And also investors invest in long term investments in other to regain more the capital involved while Speculators purchase assets for short periods of time and employ strategies in order to profit from changes in its price.
Investments keep you all clean and occupied while Speculation has more risk than a normal investment would
Is up to an individual to choose which he/she is comfortable with.
Thank you friends for checking out my post and see you all in the next one.
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