So in this article I will teach you how to form an investment portfolio and also from this very article you will have a possibility to find out how to avoid errors at investment.
There is only one method to avoid errors at investment and it is not to invest in general. As well as in any new business errors are inevitable, it is important to reduce losses from these errors to a minimum.
We already said that it is extremely important to specify term of the investments, acceptable risks and expected profitableness. Only after that it is possible to start a choice of kinds of investments and to form an investment portfolio. At investment portfolio forming it is the extremely important to consult with the specialist under investments that will allow you to avoid gross blunders and correctly to plan an investment portfolio.
As an example we will result an investment portfolio with horizon of investment of 20 years. We will assume that you are 30 years and you would like to save up for children education and additional pension. Today you have a capital of $50000 USD.
The possible investment portfolio can look like this:
$25 000 USD – to enclose in the bond profitableness of the annual of 6 %. This part of investments, taking into account annual reinvesting, will allow you to receive $80 000 USD
$20 000 USD – to enclose in the share with profitableness of 20 % annual. This part of investments, taking into account annual reinvesting, will allow you to receive $766 000 USD
An only $5 000 USD – to enclose in share options with profitableness of 30 % annual. This part of investments, taking into account annual reinvesting, will allow you to receive $950 000 USD. As investments into options is the most risky kind of investments and consequently the share of options in your portfolio should be minimum.
Total, having enclosed $50 000 today in 20 years at accomplishment of the investment plan you can receive 1 million 797 thousand USD. But, even if in the market will develop adversely and profitableness from investments in shares and options will be twice less your income will constitute $296 000 USD. And that is also maybe not a lot and not enough but it is also not bad investment profit. So just think about.
If you are young and you may tell that 20 years is so long. Then ask your parents. And we are assured that they can tell something like: “20 years have flown by so imperceptibly as though it was only yesterday”.
Certainly, tools and their percentage ratio in a portfolio can be different. You should specify it, proceeding from your financial possibilities and the relation to risk.
The days when governments have been showering people with all types of grants are over. At least for a while. But that does not mean that you must get rid of the idea of getting small business grants.
Everything is possible with smart approach; small business grants including.
Go to this blog for more helpful tips about grants, how to apply for grants, grant samples, traps and ticks of the grants. This information will help you to get small business grants or any other grants faster.