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Wednesday, May 16, 2018

By Cynthia Reynolds


Money has become a necessity. Not in the same way as food or water, but in the sense it is required in order to have food and water. As such, the drive to acquire more of it simply insures that a person has better access to the resources necessary to survive. But the acquisition of wealth is not instantaneous and can present a modicum of danger. Enter low volatility investments.

Investing involves spending money to make money. That is the gist of it. Putting money into something and hope it works out and returns even more cash back to you. But that is not always the case. Money can go in, but it does always come back out.

Now, it should be said that investment comes with a lot of risk. There is no guarantee of profit, at all. A profit can be made, but not by everyone It is akin to gambling, albeit far more respectable and less risky. The possibility of bankruptcy always looms, but so does the specter of success.

Share prices can change constantly, day by day. One day, a company has blue chip stock. The next day, it is bankrupt and the stock is worthless. A low volatility index, however, is any share that does not fluctuate so much, the price and value remains largely stable. As such, a low volatility index can alleviate some of the risk involved in investing, but not remove in its entirety.

Profit is a lot like the head of a needle in investing, in the sense that it is the point. The primary goal is the acquisition of wealth, at any level. Not every investor will achieve said goal, but all will try to do so.

The main reason that people invest is to make a profit. Profit is the goal of an investment, any investment. The endgame is not to end up rich, but to achieve high returns and make a profit.

There are different kinds of investment. Some invest in a business, either by purchasing shares in one already established or starting a whole new one. Others purchase real estate, with the intent to develop it in some way. For fortunate few are able to put together a diversified portfolio consisting of many investments across the board.

There many ways to begin investing. Some would be investors go through a bank, as many banks have programs. Others go a broker. There are also some who hire a business manager, someone to handle all the heavy lifting when it comes to investing. Other people invest independently, purchasing and selling shares without the support of a third party or a middle man. Many companies will allow an employee to use a portion of their paycheck to purchase stock.

Investing can be a tricky and intimidating thing. The possibility of rewards, of striking it big, and getting rich drives many people to start. But for some, it is just a means to secure financial stability. Whatever the case, an investment has to be made with as much forethought and consideration as possible, as the risks involved can be great. A bad investment can mean financial ruin. A good one can mean stability. A really good one can mean a private jet and a credit card with no limit. But above all else, it is simply a means to an end.




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