The “Ember months” are here and you know what that means – the year is coming to an end. While most people spend time reflecting on how the year has gone and are planning on how to close the year in style, it is important not to forget your investment goals. Smart investment decisions play an important role in helping you finish the year on the high note you desire.
In this blog post, we’ll explore four things to do to ensure that your investment goals are met.
1. Assessing Your Financial Goals
Everyone has financial goals which they wish to achieve either on a short-term basis or a long-term basis. Are you investing for your dream vacation, a “Detty December” special, buying a house, or probably for children’s school expenses? You need to quantify your goals and establish realistic timeframes. For example, if you plan to have a holiday trip by December with a budget of ₦1 million, you need to first assess your financial situation to determine how much you can invest monthly to earn ₦250,000. This process not only clarifies your goals but also sets a clear direction for your investment decisions.
2. Evaluating Risk Tolerance and Investment Horizon
With the current economic changes creating a lot of market fluctuations, so many people are uneasy about investing. It is important to know your investment tolerance. Are you willing to take on more risk for potentially higher returns, or do you prefer a conservative approach? To close the year in style you will need to pick out investments that suit your style. Also, it is important to know that your investment timeframe—how long you plan to keep your investments—impacts your risk exposure. Matching your risk profile and investment timeframe ensures your investment choices align with your comfort level.
3. Harnessing Diversification
After knowing your risk tolerance and investment timeline, it is important to diversify your investment. Diversification is a cornerstone of effective investing. It involves spreading your investments across various asset classes to reduce risk. You can find the right balance with different mutual fund packages, most times one mutual fund usually give higher interest but usually at a higher risk. Diversifying can help in mitigating high risk. You can choose between Money Market Fund, Eurobond Fund or Aggressive Growth Fund.
4. Regular Monitoring and Adjustments
Wanting to close the year in style is not just a one-time task. Even with the four months remaining in the year, markets evolve, and your life circumstances change. Regularly review your investments to ensure they continue to align with your goals and risk tolerance. If your priorities shift or market conditions change, be prepared to make adjustments. Seeking professional advice when needed can provide valuable insights and ensure your strategy remains on track.
For questions or enquiries, send us an email at enquiries@arm.com.ng, or call 012715002, or 0700 ARMENGAGE.
In conclusion, tailoring your investments is a key step towards achieving financial success. Your financial future is too important to rely on a generic approach. Take control of your investments and work towards a future that reflects your dreams and aspirations. With a personalized investment strategy in place, you can confidently navigate the complex world of finance and make decisions that align with your goals. Download the ARM One app from the Google Play Store or the App Store to begin your investment journey today.
