http://www.articlesbase.com/investing-articles/hypo-venture-capital-zurich-investment-plans-how-to-choose-the-best-4431881.htmlHere at Hypo Venture Capital we are committed to offering our clients access to the latest and broadest range of financial services and products on the market. We know that choosing the right strategy, the right investment and the right product is no easy task in this day and age! Whether its advice, investments or financial planning we are here to answer all your questions and facilitate all your financial needs.
Selecting an investment plan is a crucial decision. You would be the sole decision maker in going for an investment plan. Also you would be the only one who would be bearing all the risk associated with the investment. So you need to make a plan wisely. Unless you have enough funds put aside and a secured income, you must never opt for higher risk investment. They can drown you till throat.
Always keep in mind the below mentioned three golden rules of investment:
1) No investment plan is completely secure. There is always certain degree of risk involved in all.
2) Risk and return works here in a parallel way. Higher risks means higher return and lower risk means lower return but more safety.
3) Never ever invest in any plan blindly without understanding the complete details of the plan.
The only thing that you need to do is setting a goal before investment. "What is that you want to achieve through your investment?" Is the question to be answered before making any investment decision? Below are some of the goals that answer the above question. Some may go for a particular goal, while some opt for combination of goals. Find below the kind of goal that exists:
1) Safety: When the individual is opting for this goal wants that the risk associated with the original investment must be minimal. There are no higher returns on this, but the safety of original investment is highest.
2) Income: In this type of investment goal, the individual is targeting a constant flow of income through his investment by making some regular payment. In this case there might or might not be a decrease in the original investment done.
3) Growth: Here the individual goes for long term investment. Also the risk here is higher than above two. He might get a dividend on the invested amount or might not. He wants to take the benefit of the appreciation in the market value.
4) Speculation: This is the most risky investment of all the above. Here there are changes that you get higher return in short duration by investing in new and fast growing companies stocks and shares, but there are also chances for little or higher loss. You can even lose your entire investment amount.
No investment plan is completely secure. There is always certain degree of risk involved in all.
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