“Will your dog bite?” I asked my friend as I entered her house to the background sounds of a barking beast.
She paused and looked at me thoughtfully. And then said, “Actually I don’t know. It has bitten two people in the past.... But I have no idea what it will do now”.
Oops. That wasn’t very reassuring.
But….it was a good answer. And it was the truth.
The truth is what we will try to find out here. About products, advisers, promises and more.
When we talk about investments too, what we know is only the past. Nobody really has much idea about the future. Yet, you have to invest your money somewhere sensible. There is no other way to build wealth.
So, how should you pick an investment? What questions should you ask before making an investment? Knowing this can not only help you invest well, it can save you a lot of heart ache that comes with making ridiculous mistakes with money.
Investments are like a marriage. Getting out of bad ones come at a cost. It is better to avoid the mistakes earlier, a lot easier and cheaper too.
Over the next 4 articles, we will carefully deconstruct the multiple decisions that go into picking one investment product. Expect to read about 4 important questions you should ask before making an investment. Learn about how seasoned investors and wealthy individuals evaluate an investment product before putting in their money..
The number one filter is on "Returns" or "Expected gains" form the investments. Read about it here..