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Investment Goals - Investment according to priority.BY: money | Category: Business and Finance | Post Date: 2009-06-09
Investors have their own goals, and accordingly he chooses his investment instruments. Everyone has his own requirements and risk taking capability. So, looking at all these things they take any decision. Few investors have near term high priority goals; few investors have long term high priority goals; few have low priority goals. Near term high priority investment goals are the goals such as saving for improvement of one's own qualification or saving enough to pay the margin for a housing loan are generally very short-term priorities. The individual generally has a high emotional involvement with the achievement of this kind of goals. The emotional involvement generally arises from the fact that, for people with modest resources, the cost of non-achievement of these goals is very high. They generally tend to invest the funds saved for these goals in highly safe and liquid investments. Long term high priority investment goals: The goals that fit into this category are generally like planning for the higher education of a child who is just born, planning to set up a charitable institution after retirement, or achieving financial independence a certain number of years down the line. The goals being long-term, investments are generally made in risky assets of long maturity. It is also common to hold a reasonably diversified portfolio. In everyone's life, there are certain goals that one would like to achieve, but do not result in any sort of hardship if they are not achieved; these are called low priority investment goals. Consider, for example, goals like going on a tour to a foreign country, owning the trendiest color television in the world or owning a house in the wealthiest colony of the city. As these are likely to be beyond the reach of most people in the ordinary course of events, the funds that they save for these goals are generally invested in highly speculative investments. Investments such as these are often made for the fun and thrill of the process than seriously for achieving the goals. It is not uncommon to find investors who allocate a part of their savings to speculative investments. Money making investment goals are very popular among youngsters. There are some individuals who are not satisfied with the attainment of goals that are suitable to their economic level. They are always in continuous pursuit of avenues for acquiring substantial wealth. They are people with entrepreneurial bent of mind. Such individuals generally invest all they have into a single investment and monitor it carefully. Their risk tolerance is often very high. Therefore, they invest in upcoming companies and wait till the companies grow and then harvest their profits and move on to another company. Article Source: http://www.saching.com About Author / Additional Info: Additional Articles: * Many wonderful health benefits of Aloe Vera that everyone should know * INCREASE COMPUTER PERFORMANCE * Hurray... Holidays!! * Is Tomato just a fruit or more? Health benefits of tomatoes. * Common problems faced by women after delivery Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (1 comments so far) * Additional comments are now closed for this article *
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