We all know that investing plays a significant role in growing your wealth. However, it’s a process that takes skill and time and it is useful to know, that while investing can make you the fortunes you’ve always dreamed of, even the most successful investors take years to grow their investment portfolios.
When planning your investment journey, you need to understand all the choices on offer and make sure that your investment selections match your personal financial goals.
What should you do to set your investment goals?
The first step to setting your goals involves understanding the reason you’re investing your money. Do you want enough money to enjoy the retirement of your dreams? Or, do you want to quickly build up enough cash for that dream holiday?
Determine your risk profile according to your life stage and appetite for risk
No matter what your goals are, having realistic investment expectations will help to guide you to make choices that match your risk appetite and investment goals. If you’re looking to make fast money in the stock market, then you need to be willing to take a higher level of risk. This approach is great when you are young but when you are nearing retirement it is prudent to consider a more conservative approach to investing. Taking on less risk will ensure that you grow your money slowly and steadily. However, be careful to find a balance between risk and return as some investments carry almost no risk but also deliver returns that don’t even beat inflation. In the latter example, while you’re protecting your investment on the surface, you are actually losing money in real terms.
Find the right tools to help you achieve your investment goals
Now that you have set your goals and determined your risk appetite, you need to find investment opportunities that will help you achieve your desired outcomes. Ecsponent Limited has two investment vehicles that could help you meet your investment requirements, regardless of your investment goals.
The five-year fixed-rate income provider allows you to receive monthly dividend payments at 10% per year, over a period of five years. You need a minimum of R10,000 to invest in this option. The great news is, you won’t have to pay any commissions or fees on your investment.
For those seeking capital growth and not income, the five-year fixed-rate capital growth provider gives you a fixed compounded rate of 11.2% per year over a fixed five-year term, or 14% per annum compounded over a five year term. Your minimum investment is R10,000 and once again, there are no commissions or fees payable on this option.
Escponent’s team of qualified advisors can help you find the right investment solution to make your investment journey a success. For more information on our products and services, click here to contact a qualified consultant.