Question

In: Finance

-These are the basics of running your financial life. -Investors are nervous. They’re worried the decade-long...

-These are the basics of running your financial life.

-Investors are nervous. They’re worried the decade-long bull market in stocks is on its last legs. The good news: There are some simple steps you can take right now to firm up your financial position and increase your peace of mind.

-Many people get stressed even thinking about managing their money, seeing it as just too complicated.

-Here are seven simple ways to increase the chances of getting in—and staying in—good financial shape.

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 ?

Solutions

Expert Solution

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.    


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