FINANCIAL INVESTMENT OPPORTUNITIES
Before starting to explain the details of investing is necessary to be clear about the aspect I believe is the most important into every business activity: The Knowledge. The knowledge is the factor that puts an investor into a better position respect than another one, knowing what is surrounding you and how it works is vital in order to make a successful business activity, specially investing. No big countries will exist without big companies and societies and otherwise, politics affects business and business affects politics. Being related business and politics cannot be divided, not too much at least, therefore a wide knowledge of what is happening into your local, national and international environment is too important not to be considered. A brief example of the relationship between politics and business entities: a country to be wealthy and healthy needs incomes, the taxes, in order to give citizens good public services and good environments where to live. Taxes come from margins, margins comes from companies, companies are made of citizens, therefore if for instance politics (Government) decide to increase or decrease its incomes, this affects directly the businesses, which incomes increase or decrease according to the taxation set up by the politics. This is just a small example to explain how the two things are extremely directly related.
Here follows the explanation of all the contents that must be taken into consideration in order to make an investment, the calculations and technical data can be found at the end of it, in the appendix.
Financial systems nowadays offer a wide variety of opportunities for individual willing to invest their capital in order to obtain a monetary margin. The success or failure of an investment is due to several aspects, which need a clear analysis and understanding; these factors are: Identification of the risks, costumer’s aspiration and risk appetite. The success of the investment needs to take into consideration these aspects and according to them must be build on a diversified Portfolio. These aspects are not the only ones to be taken into consideration, is required also a deep knowledge of the business environments in which the investment is placed, such as Economic and Political, at their different stages: local, national and global. This is acknowledgment is necessary to ensure the investment return and margin. The first step to plan an investment is the identification of the risks that might occur and identify all the possible ways in order to control or avoid them. The second step is the consideration of the results that and milestones wished to be reached, step that is tightly related to the third: the will of risk, the appetite of risk. Obviously every broker would like to guarantee his costumers and high return with a low risk, but this is not possible. Therefore the aspiration of the costumer and the will of risk are basically defining the kind of investment that will be done, after the consideration of all the risk of the market in which the investment will take place. These three steps are the fundament for the construction of a successful Portfolio; the Portfolio is the set of all the titles of an investment. A Portfolio might have different frameworks personalized according to the will and ability of the investor to take risks and cover eventual losses, the framework structure might be of three different kinds: Balanced, Adventurous and Cautious. A Balanced Portfolio is made by low and high risk investment that balance each other, assuming a perfect balance of the low and high risk part of the Portfolio, the almost complete security of return of the low risk part gives the opportunity to invest the other part of the capital into high risk investments without the fear of a complete failure and relative loss of money, keeping the chance of exceeding the margin expectations in case of well results. An Adventurous...
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