Sameh Temraz: What Are The Essentials Investors Should Remember While Investing Nowadays?

It's my opinion that investors must take account of the modern day economical crisis being experienced globally ahead of investing.

It really should be the motivation of each and every investor to leap financial benefits from their investment which will be a source of self motivation. This can be in the form of:

- Retirement from employment

- Financial advantages

- Financial preparing

- Real estate and Trust funds

- Joint resources, and product organization

The above checklist is endless. Just before investors can make investments, they will have to keep in mind a few aspects and in particular analyze investment schemes. They have to think about what they intend to achieve at this time and even in the years to come. Of most important of them all are their present financial status along with the objectives they intend to achieve with the investments that they're making today. They should be more focused on the long lasting achievements instead of dwelling too much on their current status.

In basic terms, they are able to take the next factors into account:

1. It is important to evaluate how much funds they intend to invest.

2. Consider the financial institution or bank they want to deal with.

3. What risk/benefit ratio will they incur from their investment schemes?

4. Which relationship operator will they be working with to track their accounts and also guide them on the most profitable investments?

5. The fruits that they will reap from the investments that they have made whether rational or physical.

Below we shall simplify the above factors by discussing each of them individually.

1. Capital put into investment

It's extremely vital to know the funds that one would like to put into investment. It should be calculated in comparison to the investors prosperity if one intends to invest wisely. Prior to investing everything, the investor has to consider their families needs depending of their complete profits and the time the investment will take prior it might increase. Right after all of the above have been taken into account, it's now time to invest.

2. Indentify the bank to deal with

This is in fact one of the important considerations that an investor will need to take into account. Most investors were thrown right into a state of confusion during the global financial crisis because they did not know the best banks to do business with. This whole situation acted as an eye opener to people in the banking sector. It even exposed the fragile nature of policies in the banking system.

Things were made worse by the super visionary associations through their gaps and shortages in their terms and conditions on how banking along with other financial investments should be carried out.

It is important to choose a bank that has set down rules and guidelines for appropriate assistance.

1. To describe how they carry out their cash flow and balance sheet statements.

2. Understand the investors requirements and wishes.

3. Their first obligation should be to the investor rather than to their financial bonus.

4. The financial institution need to have a very respectable financial and investment track record.

5. The bank should be run by a sound management.

6. Professional client care.

An investor should decide whether the financial institution they've selected meets the above conditions.

3. The credibility of the relationship manger that's handling the investors accounts and investments.

The relationship operator will need to posses certain qualifications to be able to accurately control the investors funds.

A. Will need to be fully competent and have the necessary business school certificates.

B. Have the required expertise in both investment and financial field in order to transact business.

C. Will require a couple of years experience within this field.

D. The banker need to be someone that the investor can trust.

E. Be in the appropriate position to provide the investor all the required financial suggestions in areas like.

a. Financial state of affairs

b. Risk forbearance

c. Investors outlook towards the investment.

The above factors qualify the relationship supervisor to transact all business on behalf of the investor.

4. The predicted total returns on the investment schemes

This really should be goals that can quickly be realized. The bank will need to calculate the expected returns in the presence of the investor. Nevertheless, the calculation of the financial returns should be guided by a number of factors:

1. The major one would be the investment scheme which involves bonds, equities, private equity, trusts, cash, and several others.

2. It is important to establish financial objectives that are attainable.

3. It is very important calculate the financial returns in relation to the investment time horizon no matter whether short or long term.

4. It's vital to take the net inflation rate in consideration of the financial returns plus the expenses that are related to the investment and all other details that will need to be involved to the investment scheme.

5. Once calculating the financial returns, it's going to also be necessary to take into consideration the geographical, industry sector and economic policies that might affect the predictable total investment returns.

Financial returns are divided into two groups;

1. It is very important consider what will remain after all the above factors have been subtracted to get the total returns which are better known as the NET financial returns.

2. Consider what the investor expects to generate at the end of the day over and above what he initially invested i.e. prior he purchased any investments.

In summary it is only proper for banks to place the interests of the investors before their own. Then later on the issue of profits and bonuses for the financial institutions they work for will follow.

It is crucial that bankers be guided by well laid out terms and conditions particularly provided by the banks and financial institutions that they represent.