The first step to investing, especially investing on your own, is to make sure you have a financial plan. This financial plan will answer some basic but important question such as:
What are your financial goals?
How much are you going to invest?
For how long?
Do you understand your risk appetite?
It is very important to note that almost all investments carry some form of risk, and therefore providing answers to these fundamental investment questions is key to becoming your own investment Boss.
The next step is data mining; research, research. When investing on your own, you are responsible for your all your decisions and actions and their corresponding results; be it good, better or worse.
How do you intend to select one stock, bond, or mutual fund over other available options? Always make sure that all securities are registered with the SEC, using the SEC’s directory. Purchasing investment products solely on tips from others is a recipe for disaster! Do an exhaustive research on the product mix you have in your investment basket before taking a decision to purchase them.
There are several ways you can invest on your own, including Online Investing, Direct Investing, and Dividend Reinvestment Plans.
It’s a bold decision to start investing on your own. It equips you with extensive financial education and an edge on the investment landscape in Ghana.
Start investing on your own, make the mistakes, learn from them, and keep creating wealth; for the ultimate is Financial Freedom!
Please remember the value of investments can go down as well as up and you may not get back the amount you initially invested. If you have any doubts about which investment product is right for you please contact your financial adviser.