Finwise Turf be financially wise

To have a secured financial future one needs to save. If savings are to be meaningful, it has to be invested wisely by optimizing the risk and return. For making wise investments, a cogent investment strategy has to be in place. This is more so because investment world is a mirror of complexity, inconsistency and paradox. Here are some time-tested golden rules for building up an investment strategy: Manage your spending: Key to good investment strategy is to manage your spending first. Contrary to the popular perception, it is not the return on investment that you earn which matters most. This is because the more you spend the more return you need, the more risk you have to take and the more you end up losing because of the higher risk taken. The more you cut back on spending and stay out of debt, you are better off psychologically also.

Golden rules for Investment Strategy

Manage Risk: Risk is most obvious when an investment is volatile and least obvious when a risky investment has not yet shown any volatility. Investors should be careful about risks which are not obvious. It is better to completely avoid taking risks which are not expected to be rewarded. Employ strict risk control and money management rules, so that no single investment or series of investments can destroy your portfolio. Market moves in cycles, so at different times different investment areas will be working. Diversify: At all times diversify your portfolio. Keep it simple but manage it well backed by sound research. Design your portfolio in such a way that investment areas are truly distinct and not highly correlated. A good diversified portfolio must reflect your needs and required level of risk to achieve the same. Evaluate your portfolio periodically. Re balance the portfolio if required. Have patience to let your portfolio strategy work. Be Aware: Positive and negative returns are part of investment life. Don't become overly impressed with positive returns or overly depressed with negative returns. Don't become emotionally attached to your winners in the portfolio. Please remember that investing is and always will be a subset of planning. Do your planning first. Cover the basics well. Look at the big picture of yourself, your desires and those around you whom you care about. Put an investment strategy together for your goals and objectives. "Start now to have a better financial future"