If you know what to look for in an investment opportunity, the odds will always be stacked comfortably in your favour. Here, we’ll be going through a few tops tips to help you sort the sustainable innovators from the dead ducks.
Spotting a Scam
Whilst investment can be an incredibly rewarding and lucrative way to make a fortune, it’s always rife with potential hurdles and the greatest hurdle is an investment scam. Whilst these investment scams were once easy to spot, they are becoming far more sophisticated and more difficult to accurately identify, but there are still definite warning signs to look out for. Any unsolicited contact via email, phone or SMS message should be taken at face value and if you’ve been warned against calling back that’s another major sign that something is wrong. If you’re also being forced to make a fast decision or have been offered a return on an investment that sounds too good to be true, then you should also be wary. Stay vigilant, use your common sense and you should be able to spot the genuine articles from the fake phishers.
Asking the Right Questions
The major question you should always ask yourself when considering, or being offered, an investment opportunity is a simple one: Is there a need or demand for it? Of course, there is no such thing as a sure thing, but ask yourself if the product or service behind the investment offers something that consumers actually want or need. If you hesitate before answering yes, then it is probably not a sound investment.
Nurturing a Relationship
Particularly if you’re investing in a young start-up company, it’s important to have a healthy relationship with the founders. Make sure they are available to communicate their ideas and their plans with you at every stage and that there is an element of mutual respect. Of course, it helps if you’re open from the beginning with how hands-on you plan to be. If a company is only looking for a silent partner, it might not be the right opportunity for you.
Diversifying your portfolio
It might be a well-worn cliché, but diversifying your investment portfolio should be at the very top of your list when you’re looking for a new investment. For one thing, the more diverse your investments, the less chance they have of interfering with one another, thereby significantly reducing the risk involved. Spread your money across a variety of sectors and you are more likely to get a greater return for less risk.
Asking for Help
Investment is a tricky business to get into on the ground level; sometimes you need a little help to get you started. That’s where a company like Wellington Management can really help you. They will take you through your investment options and use their expert teams to source the very best ideas as well as exposing potential hidden risks.