- October 17, 2020
- Posted by: Stratford Team
- Category: blog
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While the business world is spinning around and we could not be sure of what the future might hold, there will be a time when we will opt to invest the money that we have.
We, at Stratford Management, aims to provide a quality and diverse investment to our clients, may it be in the short-term or long-term investments.
We also believe in the credibility that each investment company should have.
That is why we also like to help our clients to know more about investments, the risk and the management, and at the same time, what our company holds to provide the best so that we can avoid such kind of events.
WHAT IS A GOOD INVESTMENT?
Investing is one way you could hope for a more fantastic future on to that something like an asset or money.
It is pouring what you already have into something that you wanted to have or wanted to grow.
It is entrusting part of your holdings into someone or a company.
However, any investment comes with it a risk.
Investment risks may differ depending on your investment; it could be lesser or greater than the other.
Although, as expected, if you expect a higher return on your investment, it will also mean higher investment risk, and on the other hand, a lesser return will mean lesser investment risk.
Besides, one of the things that you need to consider is the credibility of your investment company.
Nowadays, many investment companies roam around, and you could not be so sure of whom to trust and who will probably scam you.
Another investment risk is also losing track of your goals, especially in long-term investments. This could mean not getting what you wanted to get or maybe losing your
assets along the process. And we, in Stratford Management, do our best so that our clients reach their goals.
We review our client’s portfolio at least three times a year so that we could assure our clients that, in the end, they will meet their goals by keeping on track.
INVESTMENT RISK FACTORS
Here is some list of the factors that could increase or decrease investment risks:
- Company-Specific Risk is a risk that comes from the company itself. If the company that you have invested in fails or suffers enormous damages and losses, that could also mean that your investment is at Risk.
- Interest- Rate Risk comes from the fact that the interest rate changes. So, if the interest rates in the market rise, then your investment will probably fall because your interest rate stays the same.
- Currency Risk happens because currency values are usually changing. So that could mean that if you have invested in a particular currency, and that currency the value fluctuates, you would probably get lesser than what you have expected. Now you will be lucky enough if the currency value of what you have invested increases because your expectation will be met. This is an essential factor to consider, primarily when investing in money.
- Credit Risk is a form of Risk that usually happens when the company or the person you have invested in is not credible enough to meet your mutual agreements. It is either they can only partially provide you, or they cannot work at all. And one of the things that you need to consider here is trust. Make sure that you know everything about the person or company, or you will be a scam. For example, in a company, take a lot of background checks before you dive in. Check the credibility of the employers and their employees. We, in Stratford Management, focuses on this by making sure that we work as a team and follow the Stratford Management Code of Ethics. We always value dedication and unity as a team when working out a valuable service for our clients.
Like any business, you could avoid any scam or losses if you choose the right company or person to invest with.
Risk management should provide you with a perspective base on your goal, your age, the timeframe, the type of investment, and the risk.
If you are more remarkable outcomes in the long run, then you should opt into an investment that you would benefit in the future, just like a house and lot investment or any proprietary investment.
The younger you are, the more time you must handle your investment, so you should try more into the higher risks in investments.
Nevertheless, if it does not work out, you will probably much have time to regain your losses and try another investment.
Also, one way to avoid huge losses is to engage in a different kind of investment.
An investment should depend on your goal, so you cannot put all your assets into one colossal investment.
What will happen is that, if that fails, you will lose everything. But if you engage in a different kind of investment, if the other fails, you will have the other assets as buffers.
For example, if you invest in various types of stocks, and there is a fall in market stock prices, you will have the other stocks to regain your losses.
And most importantly, choose the best company to invest with. Like us, Stratford Management.
We focus more on giving our clients quality and diversity when it comes to investments. And a very reliable and truthful way of managing your accounts.
Here are some other ways on how to manage investment risk:
- Follow what’s trending. Usually, the price comes along with the trend. Suppose the trending rises, so as the price. For example, in the stock market, if the costs of the stock that you have invested rises, upon selling, you will get more of what you have expected.
- Diversification. As explained above, it engages in different kinds of investments that are not related to each other.
- Position Sizing. To say, invest more of your assets into something that is less risky and some of your assets into something more dangerous than the others.
In a striving world, investing could get you on top. Just choose the right investment, the right company, and the right time.
Check the credibility to avoid scam, and make sure to keep your goals on track.