Financial Investment Objectives

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Introduction
Investment objectives are different for different people in their life. They are all depending on risk and return factor. It also depends on an individual how they manage their risk. This phenomenon is called risk-aversion, “people need to be compensated with proper return against the value of the risk they take”. The main goals of this project are to investigate possible investment opportunities, logically evaluate their corresponding risks and benefits, and make refined investment judgements. Investing money into unpredictable, unstable, and uncontrollable components can be extremely risky. However, with intelligent decisions, investing can yield significant capital gains, stability, and security.
The goal of your investment …show more content…

One needs to know the characteristics of each investment for the best and suitable investment decision.

1. Stock
Invertors become a part owner of a business upon buying that stock. This enables investors to vote for the company’s board of director and receive a profit of that company in the form of dividends. At the same time stock market does not offer a guarantee of a steady income as bonds do. It varies in value from minute to minute. On the other hand, stock market offers high rate of return. Investors make money when this value increases.
2. Bonds
A bond is basically a loan that investors are giving to the government or an institution in exchange for a pre-set interest rate paid regularly for a specified term. The foremost purpose of buying bonds is their safety. However, there is a little potential return as compare to other securities.
3. Mutual Funds
A mutual fund is a collection of stocks and bonds where investors invest their money in a fund, managed by a fund manager. The primary advantage of a mutual fund is anyone can invest money without the time or the experience that are often needed for crucial decisions. Mutual Funds has less risk with little less rate of

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