Nowadays, gathering information about personal finances and investments is as easy as just searching online. However, this is a double-edged sword, as the information that is becoming more accessible is not always reliable or useful. There are websites with misleading information, people who tell false stories and, worst of all, investment fraud, which is also promoted online.
So how do you sort out the good from the bad? It is important to follow a few steps that will allow you to make the right decision for your investment.
You must have a financial goal;
An investment is a like type of transport - bicycle, car, bus, plane, etc. - What you choose depends on where you want to go. This means that your financial goals will dictate where you should invest.
Many people invest in the hottest and most modern thing they find on the market. They watch the news and see that the stock market has risen and think that they should invest their money there. They often forget to ask themselves if this is the thing they need in order to achieve their goals.
For example, a friend has 20,000 BGN, which he plans to use for his wedding next year. Investing that money in the stock market is like riding a helicopter to go to a nearby mall. It's fast and exciting, but also risky. Better to take a car or ride a bike, or in the case of my friend, I would advise him to invest in a moderate return fund.
You can't just copy how other people invest
Investing is above all a personal task. People invest for a variety of reasons. Their financial goals are not the same, which means you can't just invest where others invest.
The best investment for you depends not only on your goals, but also on your financial capabilities, your risk tolerance and your investment profile.
So the next time you read or someone tells you about a great investment - first ask yourself if this investment is suitable for your personal financial plan before investing in it. The growth of your portfolio is more important than the efficiency of your individual investments.
Diversification is a recommendation given by financial experts, but what does it really mean? Most people understand this advice by simply allocating their money to different types of investments. Although correct, it is short-sighted, because what you really want is to have a stable portfolio that grows with each passing year.
Your goal is not to choose ever-increasing investments, but rather to create a portfolio that increases its net worth year after year, even if some of your individual investments decrease.
✔ If you are looking for an individual solution for you and your funds, you insist on professionalism, transparency and reliability - contact your personal Investment Advisor Compass Invest JSC.
✔ See how you can invest through MF Compass Global Trends: https://compass-invest.eu/compass-global-trends ;
✔ Choose the ready solution - Savings plan through investments in MF Compass Global Trends: https://compass-invest.eu/compass-global-trends-savings-plan .
**The material is of an educational nature and is not advice for buying or selling financial assets. Trading on the stock markets can be extremely risky and bring not only profits but also serious losses for investors. Make sure you are fully aware of all the risks before you decide to invest in the financial markets. If possible, it would be good to consult with certified financial advisors.
Contacts:
Sofia, 19 Georg Washington Str., 2nd floor
tel .: 02/42 19 518, 02/42 19 517
email: office@compass-invest.eu
COMPASS INVEST JSC- Your personal Investment Advisor.
Compass Invest JSC is licensed management company by the Financial Management Commission since 2006.
Important information: You should keep in mind that the value of the shares and the income from them may decrease, profits are not guaranteed and there is a risk that you will not return the full amount of the invested funds. Past performance is not a reliable indicator of future performance, unit prices and their returns may decrease as well as increase, and investors may not receive the amount they originally invested. No profits are guaranteed. Investments are not guaranteed by a guarantee fund set up by the state or another form of guarantee. The prospectus and the document with key information about the investor can be obtained on paper and/or electronic media in Bulgarian in the office of the management company on the address: Sofia, 19 Georg Washington Str., 2nd floor every working day from 9 am to 5 pm and on the website of Compass Invest JSC.