How do Professionals invest?

By iTrust Financial Advisors (www.itrust.in)

Ask any professional and they will tell you that they never make an investing decision without the discipline of following a framework.

Here we suggest some criteria that all investors must use when making an investment, to help you avoid getting into investments you don’t understand or losing money in the long run.

- Risk taking capacity: Suitability of the investment for your unique situation

- Financial goals: What do you need to generate returns for

- Time horizon: By when do you want to exit the investment

- Liquidity: How quickly you want to convert your investment into ready cash

- Capital growth or regular income: Whether it provides you adequate protection against inflation

- Taxability: What kind of tax liability do you create