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Discussion in 'Off Topic' started by Pradeep Khadgi, 2nd Nov, 2011.

  1. Pradeep Khadgi

    Pradeep Khadgi New Member

    2nd Nov, 2011
    An investment is to invest in the stock market or in any companies for future earning . An investment fund is where the investor contributes a sum of money
    into that fund, which has already been invested into certain areas of the stock market or companies .
    It is to minimise the risk by spreading the amount invested into several areas of the stock market at once.It Minimises risk to the investor as the
    fund will be configured to buy stocks and shares in different commodities.It Can be configured on the basis of risk, so the more adventurous may look
    for a high risk, high return fund, while a more cautions investor may look for a low risk, low return fund.They are good for the inexperienced investor
    as they invest in many areas of the market.It Avoids the scenario of putting your eggs in one basket, which many financial people would advise against doing.
    Investment funds still require key decisions to be made, especially in the area of risk. Though some investment funds may be labelled as cautions, or low risk,
    they can still carry a significant risk of not making money in the stock market, and subsequently high risk funds may not carry as much risk as originally thought.
    This is due to the changing nature of the world economy, and one of the many reasons why the stock market is watched closely.
    It is always a good idea to seek some kind of advice on financial matters, as the issues can be complex and difficult to grasp without guidance.
    The key here is to ensure you choose a financial advisor or investment company which is not just interested in your cash but wants to provide a good service.
    Some decisions should be made by the investor, and the investor alone as there is no need for outside interference. When choosing a good fund manager, ensure
    you choose one which basis their fee on the quality of service rather than making unnecessary decisions on your behalf.There are various type of investment like timber investments and forestry investments. Investors can invest their fund in different sectors, but the aim of investment is same.