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Planning your investment: Step 2 - Know the key issues to consider when investing

As investments are long-term commitments, you must consider your ability to invest before you commit yourself. Among the key issues to consider are:
  • How much money do you have for a medium to long-term commitment?

  • Do you fully understand the product that you are investing in?

  • Does the intended investment fit into your overall portfolio?

  • Have you compared returns on other similar investments?

  • Do you understand the risks involved and do you know your tolerance level for loss? (i.e. how much changes in the price/value of your investments can you tolerate)

  • What are your expectations towards returns on your investments? (i.e. how much returns will you be satisfied with)

  • What is your time horizon for the investment? (e.g. 5 years, 10 years, etc.)

  • Do you have the flexibility to sell the investment in the event of emergency?

  • How can you monitor the performance of your investments against your changing needs?


Back to Planning Your Investment's Contents


Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)


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Knowledge Base ID :   1405
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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