Tough financial goals are harder to achieve.
If one wants to play safe, reaching tough financial goals will be like a distant reality.
In order to keep financial goals within realistic-reach one should take higher investment risks.
Witch some careful calculations and good investment timing, even high risks can be managed.
One day my boss told me to “Get the Job Done WIT (whatever It Takes)”.
Stock Analysis Using Microsoft Excel
The goal was tough so I need that extra push to get it done.
The same push is needed to manage tough financial goal with high-return investments.
#1. Am I Talking about getting richer….?
Yes, this is one of the toughest goal to achieve in life.
Here one must be ready to handle higher investment risks no matter WIT.
Out of fear of losing money one does include riskier investment options in portfolio.
But when target is to achieve tough financial goals, higher investment risks in the best alternative.
When we invest our money in riskier options, we can face two negatives.
First, either the money is not appreciating as fast an inflation.
Second, there is negative appreciation of the invested money.
But these two negatives can be managed if we can only stay invested for long term.
When we stay invested for long term, invested money will not only grow as fast as inflation but will also beat it.
All high-return investments are inherently risky. But investors cannot ponder too much on the word ‘risk’.
Fearing risk should not influence investors to refrain from investing.
#2. Rules to manage investment risks…
- Keep investment portfolio well diversified.
- Invest through mutual funds.
- Stay Invested for long term.
Investment risk can be managed to near perfection if we can only follow these 3 simple rules.
No need to learn stock investing.
No need to approach a broker.
No need to continuously look at SENSEX.
Follow these simple rules and be assured that your returns will beat even the best in the business.
High Risk, High Return Investment
I am sure you must have heard too many things about investment risks.
All those risks can be negated by simply following 3 investing rules.
Buy an index linked ETF every time the market dips.
Make sure that you hold the ETF for next 3-5 years.
If its so easy, its worth a try?
Yes, specially when such high returns are possible with minimum risk and minimum time-involvement.
One can also buy diversified equity mutual fund (MF) or an index fund (IF).
Even better alternative will be to start a SIP in MF & IF and stay invested for 5 years.
Tougher goals needs higher investment ricks. Investing in equity in will ensure best results.