| Investing your money is probably the best use of | | | | according to your needs. This is, however, a very |
| funds you own. However, if it is invested in | | | | broad one and may be applicable to every |
| various financial products without proper research, | | | | individual. |
| you can lose every thing you owe. Hence, the | | | | Just knowing the process isn't important. You |
| process of financial investment starts with | | | | must know about all the available investment |
| effective planning and research. | | | | options and know which one to invest in. |
| But you cannot start with financial investment | | | | If you don't intend to take much of risk, you can |
| planning if you don't have a specific goal in mind. | | | | invest your money in cash products or cash |
| Hence, one of the foremost requirements is | | | | equivalent products like currency, bank balances, |
| ascertaining a goal. It can be either of the two | | | | money orders, coins, GIC, commercial papers, |
| goals mentioned below: | | | | T-Bills, money market accounts, saving accounts, |
| - Conservation of existing funds | | | | Certificate of Deposits, and so on. These are |
| - Growth of existing funds | | | | comparatively safe investment products. |
| - Or both of them | | | | If your risk appetite is a bit higher, you can invest |
| What you do with the money you conserved or | | | | in products like mutual funds, stocks, and real |
| grew depends on your personal preferences. | | | | estate. It must be noted that there are various |
| Unfortunately, not many people have goals in their | | | | ways to invest in each of these products. For |
| mind before investing their money. Hence, they | | | | instance, you can invest in real estate by investing |
| money they create or conserve is misused often. | | | | in REIT (Real estate Investment Trust), Real |
| Financial investment planning involves going | | | | Estate Funds, Property, Rental Property, and so |
| through a step-by-step process. Let us have a | | | | on. |
| look at it. | | | | For people who want to seek high profit and are |
| - Setting goals | | | | ready to take bigger risk, products like stocks and |
| - Analyze your risk taking ability | | | | derivatives are probably the best options. |
| - Asset Allocation or portfolio designing | | | | Specialized knowledge, however, is required to |
| - Select investment products that suits your | | | | gain from these products. Stock may be further |
| needs | | | | divided into aggressive growth stocks, common |
| - Regular monitoring of your investment | | | | stocks, and American Depository Receipts. |
| - Redesigning your portfolio when necessary | | | | Derivatives too can be divided into futures and |
| This is one of the money processes to go about | | | | options. |
| investing your funds. You can alter this process | | | | |