6 Parameters to Consider for Any Investment Decision
There may be lot of factors which needs to be considered before proceeding with any investment decision.
Have summarized those points under below quick 5 point checklist which can make the decision making process a simpler one.
Type of Investment
The selection of Investment Instrument depends on
- Our objective of investment.
- Our Knowledge about that product.
- Accessibility and Availability of Product.
- One time investment or recurring investment.
Every financial instrument has its own Strengths and Weakness which needs to be considered before proceeding with investment.
For example, while reaching a destination we may pick the best available travel option. If the distance to be travelled is longer then we might choose to travel via Flight and for shorter distance we may prefer a Car.
There are lot investment avenues like – Fixed Deposits, Recurring Deposits, PPF, ELSS, Equity Mutual Funds, Debt Mutual Funds, Reality Investments etc.