Common Investment Dilemmas 1

Common Investment Dilemmas

Getting into a dilemma while investing is a common trend. It usually happens when investors are indecisive about two apparently similar situations or investment avenues. If the dilemmas on are not tackled early, it might lead to a flawed investment decision, which may be disastrous for your finances. These dilemmas generally are a result of the lack of knowledge among investors about various investment options.

This leads to a dilemma about which investment option is the most suitable in a given situation. Inside a bid to simplify things, traders look for answers that may be employed by for their colleague or friend before. However, since the situation varies across investors, there is absolutely no clear-cut answer or standard solution that will hold good for all investors.

In this post we draw out 5 common investment dilemmas that investors grapple with regularly while trading. This is undoubtedly the most typical investment dilemma faced by several investors, regardless of their investment expertise. This dilemma is rooted in the investor’s belief that investing in stocks and equity funds is one and a similar thing.

  • Credit score surcharge (only .250 when you are more than 740) inches.) O00 percent
  • The ability to assemble baseline data prior to the start of the project, if necessary, and
  • Mortgage re-financing / equity take-out and the effect on cash circulation
  • Strategic planning

In reality they are quite different and suit investors with distinct profiles, although for a group of traders both options may prove viable. While investing in stocks, investors must do their homework (read research) pre-investment and post-investment. This involves understanding not the company just, but also the underlying sector.

This is within addition to grasping the macro-financial implications and its own impact on the business under review. Having conducted the research pre-investment, the buyer must continue to do so post-investment to ensure he is invested with the right company. With mutual funds it’s just a little less complicated. You’ll still want to do the essential research to choose the right equity fund.

But having done that, the rest of the research (that the investor in stocks must do on a continuing basis) is performed by a team of experts (read-finance managers). This is actually the problem that a complete lot of traders grapple with. In fact, it will not be wrong to term it as one of the most difficult investment decisions.

Of course, oftentimes, the investors are cornered in this example because they’re uncertain of their investment objectives. When there is clearness on that front side, the decision to redeem/stay invested is a relatively easy one then. Investments are usually made to achieve a specific investment objective. Hence, ideally investments should be held before the set objective is reached. However, there could be situations where investors are left without a choice but to redeem their investments mid way. Usually, such situations occur if a particular investment does not perform relating to objectives making the redemption an apparent option.

Although this problem sounds unexpected, yet it’s true. Many investors find it hard to choose between ELSS (collateral-linked savings system) and ULIPs (unit connected insurance plans). It really is apparent that they neglect to appreciate that while both are tax-saving avenues, these are two completely different investment options and cater to different buyer needs and goals.