Conservative strategy of investment is created for the clients who are not inclined to risk, — “careful” shareholders. They don’t aspire to draw fabulous interest. Their chief goal is to keep the capital more likely, rather than it to increase, and if there is a possibility and to exceed profitableness of bank deposits. Therefore in a greater degree it is recommended to put means in funds of bonds and the mixed investments.
As to aggressive strategy, it is oriented for the investors ready to run risks for the sake of high profits, and also those who has come on the market of collective investments for a long time. They are the shareholders which chief goal is creation of the capital by means of investment; their portfolio basically is constituted share investment funds.
There is also “golden mean” — moderate strategy which combines the basic pluses of the aggressive and conservative approach. Namely: the income is above than in a conservative variant and risk is lower than in the aggressive. Such strategy, basically, the people already having some capital choose and wishing to increase it, without being exposed to special risks, and also shareholders, whose financial purpose is already almost reached, and it is not meaningful to risk further. Here the portfolio is usually balanced and includes shares, bonds and the mixed investments.
The formula of identification of the purpose
How to specify, what strategy will approach to you? A question is not from simple, but also it is possible to find the answer. As at development of any important vital decisions it is necessary to specify a rate (direction), and in investment it is necessary to begin with specific goal statement. For certain many already have it: formation, purchasing of own habitation, creation of the capital for reception of a passive income and many other things.
But at attempts to reach the accurate formulation of the desires there are also difficulties which can be generalized in a phrase “want that, I do not know what”. Unfortunately, with such purpose and the result can turn out corresponding: after all without knowing a direction, it is impossible to constitute the effective action plan — strategy. Though here again it is possible to be specified.
The interesting recipe is given by Henry Erdman in the book “the rich man also invest”. It looks as follows: to begin with it is necessary to constitute the list from 25–30 most significant values which you want to catch the next year. But the most important thing that it is not necessary to limit yourself to frameworks, it is necessary to specify only that you presume.
Then opposite to each of desires approximate cost of this pleasure is put. Then all develops, and the received number multiplies by 12 (number of months in a year). To the received figure it is necessary to add only monthly expenditure (utility bills, meal, entertainments, journey and etc.). The received number also is that sum, which is necessary monthly to feel comfortable. The purpose is removed and counted up.
The times when governments have been showering people with all types of grants have passed. At least for some time. But that does not mean that you should get rid of the idea of getting small business grants.
Everything is possible with wise attitude; small business grants including.
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