Investments into capital markets are always hemmed with risks
and also blessed with rewards. Having said that investing into
the markets always comes with questions , is it good to take the
risk , is it the best time to investment, is this the best share or
stock of fund to invest in, or would I lose my capital significantly.
Added to the above, there is a plethora of information available
on markets, types of instruments and data to make things even
more confusing.
The external factors are far too many and we often get lost in the
noise when it comes to decision making of our investments.
So a very simple way to navigate and crystalize our thoughts we
could keep external factors as a reference point , but look at our
own internal requirements.
Why am I investing : Its because of a goal and a definite
requirement.
Where am I Investing: Its to do with the time and risk . Longer the
investment period higher the returns and lesser the volatility.
What am I Investing : Which asset gives me rewards risk and
safety combined
e.g. Fixed deposits and mutual fund
When am I Investing: Whether at a young age or the middle age or
well beyond middle age. This will give a fair sense of the risk
taking ability.
The above are pointers towards investing with logic wisdom and
fair certainty.
