What Are Investment Funds? Essay

1444 Words 6 Pages
Like any purchase decision, selection of any investment decision has to be based on my expectations and investment capability to fulfill these goals but before that I need to measure up myself where I stand and where I want to go. I need to answer to myself:
1.) Why am I investing in any investment scheme?
2.) What kind of returns do I expect?
3.) What portion of net worth can I keep aside for any investment?
4.) What do I want to do with gains and how many years do I have?
Looking at myself, I am already at 55 years of age, handsomely employed and have children on the verge of completing their undergraduate studies. I have more or less 5 more years of active working life and can still stretch it to another 5 years. Children are going to
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If such fund gains a higher amount per unit, then I will be experiencing gains, but at some point, per unit costs goes lower than the amount invested, thus a loss is expected, and therefore the risk of uncertainty and interest risk is being developed on this type of investments.
To easily determine what type of investment vehicle is to be acquired, I have to determine and ensure to evaluate my asset allocation thoroughly, hence the figure below:
Figure 1
Based from the figure above, we will notice and determine the normal age bracket a person has and on which phase had he been willing to earn and save.
During the early stages, an individual will be accumulating enough amounts to pursue preparing for his dream house and car. He will be working to earn such amounts to obtain his short term goal, and earn and save for his long term goal.
Consolidation phase will be when such age of 45 is reached, this means, an individual will be willing to have family and spend an enough amount for the cost of living of his entire family, and once the spending phase is reached, this is where all long term goals are fulfilled.
Thus as an individual whose age bracket is on the consolidation phase, priority will be on the children’s education for short term goal and retirement benefits for long term goal. Since I am to evaluate myself during the current situation, I will be looking

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