Investments? What's that?
8/28/2015 11:20:00 pm
Bismillah.
Assalammualaikum everyone.
Long Term Investments:
- Long investment horizon of more than one year.
Short Term Investments:
- Short investment horizon of less than 12 months.
High Risk Investments:
- Usually expose with high level of risk but it comes with high profits.
- This type of investment are usually being recommended to medium to high risk tolerant type of investor.
Low Risk Investments:
- Commonly expose to low level of risk and comes with lesser profits.
- This type of investment are usually recommended to low risk to medium risk tolerant type of investor or an investor who plans to keep aside their money for a short period of time.
Glossary:
- Investment Horizon: Duration of investment.
- Risk: Investment risk factors can be due to economical, socio-political, natural disaster, market and other types of factors.
- High Risk Tolerant Investor: An individual who are willing to lose a large amount of money for a certain period of time before the market recovers, and willing to hold on during the period of time the market is not doing well.
- Medium Risk Tolerant Investor: An individual who are willing to lose a minimal amount of money for a certain period of time before the market recovers, and either willing to change to another fund or type of investments during the period of time the market is not doing well.
- Low Risk Tolerant Investor: An individual who is not willing to lose their money at all.
I have shared the basics of what are investments and the technical jargons. So here is the real thing...
I have some friends who FB message me: "I would like to invest... How do I go about it?" or "What is the best investment plan can you suggest to me?". Want to know what I answer them? Stay tuned for the next blogpost on Monday, 31 August 2015. Till then.
Wassalam.
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