Your question: What are the 5 stages of investing?

What are the 5 major investment objectives?

What Are Investment Objectives and Why Do I Have to Choose One?

  • Income. Preservation of capital with a primary consideration on current income.
  • Balanced. …
  • Growth & Income. …
  • Long Term Growth with Safety. …
  • Long Term Growth with Greater Risk. …
  • Speculation.

What are the four main types of investments?

There are four main investment types, or asset classes, that you can choose from, each with distinct characteristics, risks and benefits.

  • Growth investments. …
  • Shares. …
  • Property. …
  • Defensive investments. …
  • Cash. …
  • Fixed interest.

What are the golden rules of investment?

Here’s our rundown of the 10 rules that every investor needs to know:

  • Set yourself goals. …
  • The bigger the potential returns, the higher the level of risk. …
  • Don’t put all your eggs in one basket. …
  • Invest for the long-term. …
  • If it seems too good to be true, it usually will be. …
  • Never invest in anything you don’t understand.

What are the procedures when investing?

Investment Process

  • Step 1: Determine Your Investment Objectives and Risk Profile. …
  • Step 2: Set Your Asset Allocation Policy. …
  • Step 3: Implementation. …
  • Step 4: Rebalance Your Portfolio. …
  • Step 5: Communication.

What are the types of investors?

5 Types of Investors

  • Angel Investors. Angel investors are individuals. …
  • Peer-to-Peer Lenders. Peer-to-peer lenders can be individuals or groups. …
  • Personal Investors. Businesses can turn to their family, friends, and networks for their first investments. …
  • Banks. Banks are a classic source for business loans. …
  • Venture Capitalists.
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What are the 3 types of investments?

There are three main types of investments:

  • Stocks.
  • Bonds.
  • Cash equivalent.