Managing investments (Школьные сочинения)

Before I start telling you about managing investments, I would like to give a definition of investment. According to the Oxford dictionary, investing is the investment of temporarily free cash and other funds in a project or asset to generate additional income in the form of profit or in order to gain an opportunity to influence decisions. It would be capital, business or property investment.

Meanwhile, investment management is the process of building a portfolio of stocks, bonds and other investments based on your goals. Investment management often includes suggesting an investment strategy, buying and selling investments and managing the portfolio’s asset allocation.

Like any type of economic activity, investing aims to obtain material benefits. For such a goal to be achievable and realistic, it is necessary to have certain skills to effectively manage the investment process.

The basis of investment management is determined precisely by the principle of maximizing the investor’s profit while minimizing possible risks.

To be good at investments, people should consider several things, because if people aren’t prepared, they just lose their money and time.

Firstly, you should explore all possibilities to invest and invest only in what you understand. A person who wants to invest should first understand how an investment works. If people don’t understand where they are putting their money, they are asking for trouble.

Secondly, people should invest free money and don’t invest money they could need, because investing is a long process and associated risks, so people can lose all their money.

Thirdly, people should keep an eye open and always track current situation. For example, people may sign up for a newsletter or daily digest, watch or read commentary on financial news sites and TV channels.

And in the end, people should be rational about price. For example, buying an expensive stock is not always better than buying a few cheaper ones, and vice versa. So, people need to evaluate all the factors but price.

Well, in conclusion, I would like to say that if you want to start investing, you need to have a cool head, be concentrated, rational and impartial, because investing comes with risk and if something goes wrong, you will have to be prepared and not panicked.