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: 344Word Count: 465See All articles From Author

Add Comment

Business Articles

1. Single Piece Flanged End Ball Valve Manufacturers In Ahmedabad, India – Mnc Valves
Author: mnc valves

2. A Simple Guide To Pitra Dosh And Kaal Sarp Puja At Trimbakeshwar
Author: Manoj Guruji

3. The Evolution Of Cnc Machined Components: What Oem
Author: Arrow Off-Road

4. How To Design A Step And Repeat Backdrop That Looks Professional?
Author: Steve Morgan

5. Spartan Jetter For Sale | Professional Hydro Jetting Equipment In Utah
Author: HotJet USA

6. Top 5 Factors To Consider When Selecting A Gasket
Author: Gasco Inc

7. Hiring In Mumbai Without The Chaos: A Practical Guide
Author: Digirecruitx

8. Bpo Outsourcing Company
Author: kajal

9. Renewable Energy Companies And The Challenge Of Grid Integration
Author: Hartek Group

10. How Freight Claims Management Works [2026 Updated]
Author: ArgusLogistics

11. Byst: Setting A New Standard In Business Mentorship Excellence
Author: Byst Youth

12. Voice And Visual Search: What Researchers Must Know
Author: Philomath Research

13. Let’s Build Your Bpo Business Together!
Author: Zoetic BPO Services

14. How To Spot Fake Copper And Brass Cookware At The Market
Author: Copper Brazier

15. Why More Industries Are Turning To Kyc Projects Right Now
Author: mohan

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