The investment environment has become a bit wobbly. With seven banks failing, a plunge in confidence is inevitable. There are other current and imminent collapses of other financial institutions we may not be fully aware of. Thus investors are asking, WHERE DO I INVEST? These are a few pointers investors can look at when undertaking the venture.
- Who owns the entity: look out for the owners’ business history and lifestyle
- What are the other businesses connected to your intended investment company? This is important because funds will most likely flow into them and may never return increasing your risk of loss of investment returns, capital or both.
- The owners hold of the company. The level of freedom management has to run the firm. You can get his information if you skillfully engage some lower ranking officers
- Try and understand the model of the business and how money is being made for you to be paid up. They are usually not too complicated as people think. This factor includes how promised returns are being made.
- Financials are good (for those who need it), but they can always be engineered. Look out for other non-financial factors like the maturity of the people running the business
- Speak to someone who understands investments, not just the one selling their company’s investments
These may not be all the factors you need to consider. Also you may not be able to realistically get accurate feedback for all the factors mentioned, but before you invest get answers to at least three of the factors mentioned.
Must read: A World of Investments: The Collective Investment Scheme