Question

1. What are some of the general challenges in today’s investment environment, and what are the specific challenges that we did not see last year?

2.What does an investor need to know in order to be effective?

3.What are some of the tools a manager may use in helping an investor achieve his or her financial goals?

Please post a new answer

Answer 1

1.Investment environment is continuosly changing. The general challenges in todays investment environment:

Uncertainty about the future-Able to predict customer trends, Market trends etc.

Financial management

Monitoring performance-Using a meaningful set of rounded performance indicators that provide the business with insights about how well it is performing.

Regualtion and compliance-As market and technologies shift, so do rules and regulations.

Competencies and recruiting the right talent-During peak growth periods, finding the right people and developing the right skills and competencies is the key to a sustainable future.

Technology-As technologies change practically at the speed of light, its vital for companies to innovate or be left behind.

Exploding data-Keeping safe and extracting insights from the everever increasing amounts of data your company produces needs to be in the hands of a qualifies professional who can help you get themost return from that data.

Customer service

Maintaning reputation-Businesses have to monitor and maintain their online reputations.

2. There are various things that investor need to know in order to be effective.

Having a diversification strategy-An investor need to determine how much he want to allocate to thw asset class ana then diversify your investment to reduce risk and increase your odds of success.

Discussion with an expert- An investor must finds someone who knows the industry that intrest him.

Understanding the company's growth-To understand growth, an investor has to dig into the key financial statements-tthe balance sheet, income statememt and cash flow statement.

Know the Exit strategy-Know the exit scenarios for the industry that intrests the investor. How big will the business need to be and with what margins, to go public or be an attractive acquisition target.

Understanding the business-Investor must know that ''invest in what you know". Before investing in a company, study the business.

Know the deal- Investor must determine how a company's valuation and deal structure stacks up against others in the industry. Looking at the valuation relative to comparable companies based on multiple factors including revenue, net income, growth rate, risk profile and capital structure.

3.some of the tools a manager may use in acheiving the goal of most investors is to be able to make smart investment decisions in a cost effective and efficient way that doesnt cuse them too much stress.

Product allocation- It is the financial planning method that managers can use to help the investors, find the most favourable mix of investment, annuity and insurance products to meet the specific objectives, such as retirement.

Better tax efficiency-Using automated technology allows investors to take advantage of improved tax efficiency strategies. These strategies include tax loss harvesting and tax aware share selling, both of which may increase investor overall returns without adding any additional risks.

More focussed allocation advice-It allows for the creation of portfolios with varying asset classes and different goals in terms of long and short tem investing horizons.

Outcomes can be previewed