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How To Make Good Investments
The most commonly asked FAQ answered. There are few factors that should be considered when making a good investment. Let’s move onto the factors.
Initially, you need to look into the investments you could make. For example: invest in a start-up, invest in the stock exchange market, invest in a fixed deposit, etc. After, you’ve found the investments you could make, narrow it down to the ones you can afford. If the investment you can afford is too insignificant, you can opt for an investment loan and invest the loan cash into the investment in consideration. If you are interested about best personal loan you can visit this website https://www.maxcredit.sg/personal-loan.php.
After the investment is selected and can be afforded, look into the risk of the investments. For example: the safest investment is the investment in the fixed deposit and the most risky investment could be investing in a start-up or stock exchange. Risk is a main thing to consider before making an investment because risk is the one thing that can make the best investment into the worst one. However remember that risk and profit is inversely related; meaning the more the risk, the more the profits and vice versa. The safest example is the fixed deposit as discussed earlier however the income earned from that is very low compared to the highly risky investments; stock exchange and start up. Therefore, the hard decision should be made whether you want to play it safe or take the risk?
Return on Investment (ROI)
Return on Investment is basically the income you get from the investment made. ROI is calculated by dividing the total income from the investment by the total cost of the investment. If the ROI is more than 5:1, the investment is good.
The payback period is the time taken to cover the cost of the investment. After the cost is covered, any income is considered a profit. It is said that: the lower the payback period, the better the investment. Because then the investment would result in fast cash Singapore, whereas if it takes too long to cover the cost quick cash cannot be made.
These are the main factors that should be considered by any individual before making an investment, because financial planners can make a fool out of you to make a profit for themselves, therefore knowing whether the investment is good or not, is very vital.