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Investment Principles

Investment decisions should be made on basic criteria: investments3

Safety: while investing you must ensure your investment is safe.

Liquidity: you may want your money back. Whether it will be possible to get it back when you want or if you want money back in 10 years. You may invest your money in long-term investments.

Returns: Rate of return is very important. Many times all these criteria contradict with each other-e.g. Long term investments might have higher rate of return, but they are not liquid or the investments where there are

higher returns are not safe. While investing we have to look into all three aspects and balance them.

 

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