Investment Strategies for Those with Money to Invest -1
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities.)
While there are many individuals who have plenty of money to invest, more than a few hesitate to do so because they are unsure of exactly how and where to invest their money. And while it may seem a logical conclusion that the more money you have the more complicated your investment pictures become, that is not necessarily the case. Financial investment strategies can still be broken down into simple, easy to understand terms.
Assets Allocation - one of the most important elements for a success financial strategies - is proper assets allocation. This refers to the mix of investments you have in your portfolio, and it’s important to keep a good balance of different types of investment - like stocks, bonds and cash, for example – across a range of industries groups or sectors. Your ultimate financial objectives, most of time you have to invest and you’re at own risk tolerance, should be taken into consideration as you decide exactly how to divide up your funds and where to invest them. Although assets allocation will diversify your portfolio, it will not protect against fluctuating prices or uncertain returns.
Equity investment strategies - when investing in stocks, a good rule of thumb is to diversify your stock portfolio across number of sectors; you may also want to overweight industry sectors whose stocks you believe are likely to benefits from the current outlook for the economy. Once you have identified these sectors, you can select specific stocks from within industry. You may want to consider stocks that pay dividends, which can give your investment an added boost. Another benefit of these stocks is that you can usually reinvest dividends and you can directly into the purchase of more stocks, and many investment firms even have programs and allow you to do so at no cost. Another good idea is to select companies that have a solid foundation and have a potential to continue to grow over the long term. While it’s not easy to predict the future, it is best that you concern your financial advisor and research on your own should enable you to identify companies that have the qualities necessary to meet your long-term objectives.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale.)
