Sameh Temraz: The Fundamentals That Investors Need To Evaluate When They Want To Invest These Days.

I believe that investors should take into consideration what happened globally;(financial crisis), when they want to invest their money nowadays.

This money or capital invested has to be for a financial goal and an investment objective purpose, which will add positive value to their portfolios. Including:

- Retirement

- Capital gains

- Financial planning

- Trust funds, real estate

- Mutual funds, and product structuring

Those are some examples, however the list go for longer. Generally investors search for such investment schemes. Investors should think of certain aspects when they want to invest. They've to think of their financial goals and objectives in the short and long terms. They have to take into consideration their present financial situation and exactly where they want to be with their investments in the future. Most investors need to think more long term rather than short term to see beneficial returns on their investment decisions.

The factors which they have to look after is the following speaking in general:

1- The invested funds. How much to invest?

2- which bank or financial institution should they bank their assets with.

3- The risk/ reward ratio associated with these types of investment schemes.

We will take every single aspect stand alone and describe it further in simple manner.

1. The invested capital

Investors really should think of the money which they want to invest. It needs to be very carefully calculated as a percentage from the total wealth, so the investment choice would be the best one. They have to think of what is need for their families (expenses), and then make a decision on the sum of money to invest. We have to calculate the amount depending on the investor's current financial situation and the time horizon for this investment to expand (short or long term).

Then we can begin the whole process for the investor. We have to spend this money according to 2 fundamental aspects that may impact the output of this investment:

A. The investors risk tolerance.

Risk tolerance, is just how much the investor can take or to which level he/ she can take of a lose on their invested capital. This risk has to be very well calculated in order to know when to stop if we gone over a certain level or prior to even reaching that level of lose. There is certain mechanism that could be applied to do so by professionals in the field. The risk should be calculated, so we are able to calculate the rewards (returns).

B. The investment, financial schemes and the expected rate of return.

When the investor is investing the money, the investment schemes have to match their investment experiences and risk tolerance. They should understand what they ate getting themselves into. The investor's portfolio should be understood and also getting involved in it all along the process. This methodology of doing business will add positive value for the investor and enhance the dealing with the bank or the financial institution.

2. Which bank to do business with?

This can be a very important factor when investors want to invest their funds. After the global financial crisis, investors were very puzzled and did not know which banks to trust and do business with again. What have happened worldwide with the banking sector have taught us and made us realize some facts. The fact that the banking system and policies are extremely fragile. The system has caused us a crisis for all it matters.

On the other hand, the super visionary associations have taken an incredibly huge role in adding to our issues with the gaps and shortages that they have in their own terms and conditions of how the banking, financial and investment business should and could be done.

Simply, the bank you'll deal with should have some criteria that will give the investor the power of taking a decision to work with:

1. Conservatism, in the way in which they apply their cash flow and balance sheet statements.

2. Realize the investors demands and requirements. To work for the investor interest and not just for their own.

3. Cater to the investor investments, rather than think of their own profitability and stock price.

4. A track record bank in positive and bad financial and investment sentiments in the market place.

5. The management that is operating the bank.

6. Outstanding customer support and care.

The bank to work with and invest your money with should at a minimum level have those standards described above.

3. The relationship manager that handles investors accounts and investments.

A relationship manager really should have certain elements that will support and qualify them to manage the investors money:

A. Educated. (Business school, certifications in the field).

B. Skilled in the financial and investment field, and know the how to do practice.

C. Experience for certain number of years, so they'll add value to the investor.

D. Trustworthy, so the investor trusts to invest with the bank they represent.

E. Provide investors with the very best financial alternatives according to their:

a. Financial situation

b. Risk tolerance

c. Investors attitude towards investment.

If and when the relationship supervisor has such elements then they're eligible to manage investors money with their banks.

Finally, bankers should have 1 important thought when dealing with investors. They've to think first and for most in the investor best interest and then the banks or financial institutions that they represent. (profitability and bonuses).

Bankers, work hard for your clients, and not only for your banks and financial institutions.