Dilemmas of investing from MyIRIS

>> Wednesday, January 14, 2009

When a layman decides to chalk out his investments what crops up first are queries and confusion. The first question that causes the chain reaction is `` what kind of investment option are available and which ones will help me reap maximum returns? ``

Nothing comes free of cost and investments are no exception. Investments come with their set of risks which are to be borne by the investor... Risks in investment are inevitable. The potential investor should always consider the risk options before investing. Taking risk is the first dilemma that the investor has to face.

Coming back to the main question: `what kinds of investment option are available and which ones will help me reap maximum returns? `

The answer to this question is very subjective, as it defers from person to person. Factors like the person`s risk appetite, his investment goals and others have to be precisely considered.. Seeking the most suited reply for the question the investor usually lands up taking advice from near and dear ones for investment. Suggestions put forth by different people vary from one another; some suggests to go for the traditional way of investing i.e.`` Fixed Deposits with a Bank``, others may suggest none other than ``Investing in Equities``.

``Properties/real estate``, ``bullion`` and so on and so forth will appear in the list of possible avenues available in today`s time.

The plethora of options proves to be of little help in guiding the person out of the problem, moreover they add on to be just another reason for the prospective investor to have sleepless nights.

The question that arises next in mind is that whether I should go for self investing or opt for a financial advisor?

However, this is not the actual dilemma faced by a potential investor, it`s a decision which depends upon one`s availability of time to keep track of one`s investments and one`s ability as it requires research before opting for an investment avenue.

So to evade any further dilemmas, the best way to find an answer to our main question i.e. ``which investment avenue shoulder I opt for? `` is to go for self questioning/ self advice, keeping in mind certain factors like one`s risk taking capacity, investment goals, amount to be invested etc...

One should calculate his/her risk appetite and invest accordingly.

Acknowledging the goal for which the investment is been made is radically important; investment goal can be a short term or long term goal. If the potential investor is eyeing short term investments he/she can go for options which are best suitable for short term investment like, bank deposits or debt mutual funds as they have performed well as compared to equity funds.

Only if you think that you can make the above decisions on your own, if you have the time and inclination to get into research and know the in and out of your investments, as well as keep a track post your investments, you need not approach a financial planner or a financial advisor, you can invest on your own; else, it will be feasible to utilize the services of a financial planner and pay a little today to have a profitable tomorrow. - MyIRIS.Com