Investors Should Switch Strategies During Initial Problems


BANGALORE:  Investment has been always a hot favorite topic for all. The hunger for capital always allures people to step into investment sectors. But at times, the investors may find trouble in the early stages after their investment in certain sectors.

One could very well learn from the example of Spice Jet’s chief commercial officer who quit after a stretch over a year. Eventually the CEO also resigned after a month later. The main reason behind such withdraw was their differences with the promoters regarding the decision to cut fares. The company had to suffer from the 40 percent drop in the company’s value. If the investors would have kept an early eye on such issues, such problems would have not occurred.

This happens when people just jumps into this sector without any prior knowledge or experience. Knowledge and experience plays the role of a trump card in any business sector and thus also in investment.

Every investor is aware about the fact that inflation can cause huge risk on his or her investments. Therefore, inflation is one big consideration that must be on the investor’s check-list. The only remedy or precautions investors need to be aware of the risk while investing, especially for conservative investors.

Another major factor that has to be kept in mind is that interest rates affect bonds. For some years, investors have enjoyed record low interest rates, but they shouldn’t take into consideration that the interest rates aren't going to remain low forever.  By doing this, investors are poised to face more risk.

In order to counter these risks investors need to stay away from long duration bonds and stick towards short and medium-duration ones.

If you have suffered huge losses or have made only an insignificant gain, then may be along with your experiences you need a little more, like some guidelines for investing

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