THOUGHT OF THE WEEK
DO’S AND DON’TS OF INVESTMENTS (PART 3)
3. Don’t take unnecessary risks Though risk and reward are directly correlated, your risk reward should always be balanced. Safeguarding your money is just as important as getting high returns. Never expose your money to more risk than is necessary to accomplish your goals.
4. Don’t lose sight of your investment objectives It is important to keep your eye on your long-term goals and the reasons you invested the way you did in the first place.
5. Don’t follow the crowd
Investors cannot get significant success from the market by following the crowd. Do your own research, rather than following the crowd.
6. Don’t have unrealistic expectations
Have realistic expectations while investing. A return between 12– 18% in a year is considered good in the market. Do not expect to double your money in two or three months.
7. Don’t think you can engage in short-term market timing As a long- term investor, you should never contemplate taking advantage of short-term market dealings and speculations. Playing with shares and mutual funds in the short-term market may give you a profit in a few transactions but will not give you profits forever.
This weekly report is the copyright of NIMED Capital Ltd. (NIMED), an investment banking company licensed and regulated by the Securities and Exchange Commission (S.E.C.) of Ghana as Investment Advisers as well as the National Pensions Regulatory Authority (N.P.R.A.) as an approved Pension Fund Manager. Information and opinions herein have been compiled or arrived at based on information obtained from sources considered reliable; we therefore do not hold ourselves responsible for its completeness or accuracy. All statements of opinion, projections, forecasts, or those relating to expectations regarding future events or performance of investments represent NIMED’s own assessment and interpretation of information currently available to NIMED, which are subject to change.