In: Finance
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Can you prepare a summary to apply The 7 Habits of Highly Effective investors as part of apply the Investment Management course?
in order to have healthy financial person and success in your life as a investor that benefits and sustains in investing life
1. Start to Save as Early as Possible ?
2. Understand the Effects Compound Interest ?
3. Set an asset allocation and diversify ?
4. Save Consistently and Systematically ?
5. Use Strategy Over Prediction ?
6. Spend less than you earn ?
7. Understand and Respect Risk ?
Solution:-
HOW TO BECOME A BETTER INVESTOR
There are various that should be keep in mind to become a better investor. We need to gain knowledge about the market ,market conditions and forecasting ability about the future business.Every investor shall be required to know about 7 things to become a better and highly effective investor.
1.Start to save early as possible
It is because of early investment leads to compounding returns. Time value of money will increase over a period of time that will be a benefit to the investor. Regular investment in the early age will leads to high return.
2. Understand the effects of compounding interest
In the first point discussed about the early age investment benefits and we can easily understand the benefits of compound interest. Compounding of interest will multiply the investor’s investment amount in to very huge.
3. Set and Asset allocation and Diversify
It is very important that asset allocation for the investment for better benefits from the assets .If the asset we made investment is having low performance will leads to less benefits to the investor
4. Save consistently and systematically
It is also very important that the investor save consistently and systematically. A systematical saving is the process of automatically setting aside a specific amount of your income at regular intervals, whether weekly, biweekly or monthly .
5. Use strategy over prediction
It is very important to make strategy over prediction. Firstly ,we need to forecast about the future and on the basis of that must be take a good strategy for investment.