what are the factors to be considered before investing?

Answer 1

1.) savings goal - is the money for an emergency fund, a large purchase, retirement or some other purpose? The goal will affect the level of risk and the type of investments that are appropriate

2.) risk tolerance - your investments should never keep you awake at night

3.) time frame - different strategies and investments are suited to different time frames

4.) What level of involvement are you willing to have? If finance bores you, or do not have time or interest to actively manage your money, certain strategies and investments will not be suitable

Answer 2

How much you are willing to lose.
How long can the money remain invested.
As with any of this type investment there is an amount of risk for the returns you expect. Banks pay about 1% I guess, but, it a sure thing. Stocks, FOREX etc, are more volatile for the amount of return involved. You can make more than a bank, but, you can lose it just as easy. Many people start investing with money they can not afford to invest. Then, when they are in a losing position they need to get the money for living expenses, thus taking a loss. Most successful investments take time and require patients.

Answer 3

First, decide on what kind of investment you would like to make. I would stay away from people that ask you to invest in their scheme and I would stay away from investing in stocks on sites like Ameritrade (if you are just starting out). If you have a job and your company has a 401K, that is the best. If you don't have a job and / or don't have a 401K, then you can call one of several mutual fund companies and tell them you have money to invest. A mutual fund is a family of stocks that a professional creates for you. Put the initial investment in (like $500 or $1000.00), then keep putting $100 or $200 into the fund each month. It will grow for now, while you are still young, then you can change your fund options later, move the fund money to a 401K or start investing in individual stocks.

Answer 4

1. Your time frame. How long will the money be invested?
2. Your risk tolerance. How much volatility are you willing to accept comfortably?

If you have a long time frame and can tolerate risk, then stocks or even something more aggressive are appropriate. If you cannnot accept the chance of losing a significant percentage of your investment then more conservative vehicles are called for.

Answer 5

There are several factor one needs to take it in consideration before investing stock. they are Sector, EPS, P.E., which segment that stock is in (e.g. A group B group), how much that script is expected to go up. all these factors one shd consider before investing.