6 Parameters to Consider for Any Investment Decision
With each Reward for the Financial Instrument, comes the Risk of that investment. Each investment instrument (option) has its own Risks to be considered. The rewards of the financial investment varies as per the amount of Risk that we take.
As said by Renowned Financial Investor, the number one rule is – Not to loose money while doing investments. Hence we need to learn about the instrument, consider the risks of that investment and then choose the option which suits our Investment Objective.
The Risk can be positive or negative and needs a constant monitoring for all the events happening from time to time.
There are various Risks to be considered like – Will you loose money, or you will fall short of reaching your desired goal. Are you willing to accept Higher Risks for sake of getting Higher Rewards.
The Risk factor can be offset with our knowledge about that Financial Product.