Factors that influence your investment strategy
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Factors that influence your investment strategy

  • Highlights

  • Learn why an investment strategy is crucial to success

  • Define your goals before you start investing

  • Pick your investment options, based on time horizon

  • Find out how risk appetite affects investment strategy

The key to high returns is a disciplined investment strategy, which enables you to be focused and take the right decisions. However, there is no one-size-fits-all approach for creating an investment strategy.

Each strategy differs for every investor, depending on the factors mentioned below.

1. Investment Goals

Before you start investing, it is very important to define your investment goals. This can help you pursue your financial goals.

With a goal-driven investment approach, you can:
a. Take informed decisions for yourself, and avoid following the herd
b. Plan your investments with a long-term perspective
c. Be better prepared for emergencies

2. Time Horizon

When planning your investment strategy, you must also consider time as an essential factor. It helps you pick the right investment avenues. Usually, when investing for shorter time horizons, you can pick options such as short-term bonds, National Savings Certificate, Recurring Deposits, or Liquid Funds.

Similarly, when investing for the longer haul, you can pick options like Public Provident Funds, Mutual Funds, Stocks, or Real estate.

You can also invest in Bajaj Finance Fixed Deposits, and choose your tenor, as per your time horizon. This helps you to get greater stability, safety and flexibility. You can also enjoy an attractive interest rate, and get assured returns.

3. Risk Appetite

Your risk appetite and tolerance is of the most important factors impacting your investment strategy. It determines the extent to which you can tolerate high-order changes in your investment plan. When determining your risk appetite and tolerance, you must consider:

a. Your age
b. Net worth and financial position
c. Knowledge and experience in handling the specific financial product
d. Expected returns
e. Financial responsibilities at hand

With proper assessment of your risk appetite and tolerance level, you can decide on your investment strategy to achieve your goals.

Fixed Deposits are considered one of the safest investment options, which suits every investor. You can also calculate your maturity amount using a Fixed Deposit Calculator. This can help you plan better, as you can determine your returns, before you even start investing.

Bajaj Finance Fixed Deposit Calculator

You must choose your investment instruments very carefully, which depend on your investment goals, time horizon and risk-appetite. Asset allocation and strategic diversification of your assets can ensure better preparedness for the long-term.

You must choose the right asset allocation strategy, depending on your goals, age, market expectations and risk tolerance. Consider choosing a mixture of high-risk and low-risk investment options, so that your risks are diversified and you can get stable returns with a disciplined strategy.

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