Investment planning involves aligning financial goals with investment resources to earn more money through investment. Investment risk refers to the uncertainty and potential loss from investment decisions. There are several types of investment risk including market risk from economic changes affecting the entire market, liquidity risk from being unable to sell investments at a fair price, and credit risk of debt issuers defaulting on bonds.
Investment planning involves aligning financial goals with investment resources to earn more money through investment. Investment risk refers to the uncertainty and potential loss from investment decisions. There are several types of investment risk including market risk from economic changes affecting the entire market, liquidity risk from being unable to sell investments at a fair price, and credit risk of debt issuers defaulting on bonds.
Investment planning involves aligning financial goals with investment resources to earn more money through investment. Investment risk refers to the uncertainty and potential loss from investment decisions. There are several types of investment risk including market risk from economic changes affecting the entire market, liquidity risk from being unable to sell investments at a fair price, and credit risk of debt issuers defaulting on bonds.
BY – SHREYAS RAIKAR 12/ T.Y.B.M.S WHAT IS INVESTMENT PLANNING ?
Investment planning is the process of
aligning your financial goals with your investment resources. It is the main component of financial planning which puts to use your savings and ensures you earn more money through investment.
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WHAT IS INVESTMENT RISK ? Investment risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. When you invest your money, you don't know for sure if you'll receive the desired returns or experience unexpected losses.
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SUCCESSFUL INVESTMENT IS ABOUT MANAGING RISK , NOT AVOIDING IT. BENJAMIN GRAHAM
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TYPES OF INVESTMENT RISK MARKET RISK: Market risk is the risk of investments declining in value because of economic developments or other events that affect the entire market. The main types of marketing risks are equity risk, interest rate risk and currency risk. LIQUIDITY RISK: Liquidity risk is the risk of being unable to sell your investments at a fair price to get your money out when you want to. CREDIT RISK: The risk that the government entity or co that issued the bond will run into financial difficulties) won't be able to pay the interest or repay the principle maturity. Credit risk applies to debt investments bonds.