Reduce Your Stake

To begin with, your risk appetite depends on certain factors which are your age, personality, financial and past experience. You need to understand that younger people tend to have a higher risk appetite. This is attributed to the fact that they have a lower relative inexperience. Older folks may have experienced losses in the past due to bad judgment and decisions. As a result, they are more careful as they trod and progress in life. There are hard times indeed, and as such, you must be averse to risk. If you desire better results and big profits, it is essential you allocate your resources efficiently and avoid the risk of losing your entire invested assets.

First and foremost, you need to identify what are your asset invested assets. It may be financial, physical or spiritual. Financial advantages are cash, stocks and equities. Physical plus point are liquid assets such as buildings. Spiritual assets include your character, prayer and obligation to GOD. Given these points, your investment when done with a long-term focus can produce amazing high returns, which would support your future plans. How nervous do you get when you lose? The rule of the game is not to put all your eggs in one basket. It is important to diversify in order to reduce your stake. For instance, if you pull together all your money into a business venture, definitely, the chances of getting back your hard-earned money is hard because you have raised your risk appetite. The truth of the matter is if you do not want volatility, you better minimize the menace of instability and protect your investments.

Tips on how to manage a high risk appetite

It is important to take time to study your risk appetite. Keeping an eye on it can prevent minor mistakes from plunging you into big problems. Always make sure you learn the basics and set concrete and meaningful goals. Diversify and review your risk assets regularly in order to get a profitable venture. As you walk along the line, you need to learn how to reward yourself. Pay yourself by either selling a small part of your profitable venture or investing more in other projects. Did your goals meet up with planned objectives? Remember that there are many fraudsters waiting for the opportunity to steal your profits and eat the fruits of your labor. Avoid anything that is free it is usually a trap that may explode your risk appetite.

Breaking News – Retire Early, Build Wealth And Have More Freedom If You Do This

Investing is something that a lot of wealthy people do. In my opinion, average people do not know what is the best opportunities to invest in. As of 2017, everything is online. If you want to see a quick return on an investment, then you might want to invest in a business that is internet based. An even better idea, in my opinion is to invest in a business opportunity. Business opportunities are online based and they grant you the opportunity to build true wealth from home by selling products and services.

Here Is The Naked Truth!

According to Home Business Magazine, 8 out of 12 people fail when they join these opportunities because of lack of education. These investment are a sure-fire way to build wealth but if you are not skilled in the aspects of marketing, prospecting and closing, you will fail. Most up-lines fail to give the right training to new recruits. An up-line is someone who is basically your mentor. When you join an opportunity, they are responsible for showing you the ropes and helping you succeed.

Old school mentors often use methods from the 1970’s and 80’s. If you choose to invest in yourself by joining an opportunity, make sure that your mentor uses modern marketing practices to ensure your success.

How are You Able To Retire Early, Build Wealth And Have More Freedom?

If you join the right opportunity and have the right mentor, you can earn income all from the comfort of your living room. You get to save costs that a traditional business owner would be responsible for like an office or a building. Furthermore, Some opportunities allow you to sell home essential services like cell phone, internet, cable and electricity. Which means, that you get paid for as long as your customer stays with your service and pays the bill every month.

So essential if you join a business opportunity that sells home essential services, you can get paid every month for life by doing something only one time which is closing the deal between you and your customer.

Things to Remember While Investing in Art

The Indian art market is divided into two segments – Modern and Contemporary. Modern segment comprises of masters like M F Husain, S H Raza, F N Souza, VS Gaitonde, Amrita Sher Gill and more. Contemporary segment is comparatively young, around last 30 years. Alternately, Painters who were born after 1930.

1. Do your own research.

One of the first things to do before buying art is to empower yourself by reading up on art, visiting local art galleries, meeting artists/ collectors and other people who are actively involved in this field. Talk to artists, consultants and curators to get insights about the functioning of the art market and to also network with like-minded people intending to buy art also known as “Collectors”.

There are international auction houses like Sotheby’s and Christie’s which focus on Indian art. Also there are domestic auction houses like Pundoles, Asta guru and Saffron Art. You can contact dealers and galleries. You can also approach an art advisor. You can end up paying a consultant 2-5% fee for expensive works. The service for smaller works may cost 5-15% of the value of the artwork. Fees also depends upon rarity of art work.

Ensure that the dealers and galleries sell genuine/ authentic works. Art market is full with fake artworks, so make sure you do proper research before buying the art. Check few important documents while purchasing art like authenticity guarantee, a provenance certificate, that is the previous owners of the artwork, condition report, publications (if any). Nowadays, many auction houses like Saffronart do not provide authenticity certificate. While buying from the auction houses make sure you understand buyer’s premium and the total cost incurred by (delivery charge, taxes, etc). Usually when you are buying through a dealer, only the seller has to give commission to the dealer and not the buyer. This can also be happen when you buy from a gallery. Again this depends on dealer, gallery and artwork involved.

2. Quality, not quantity.

Invest in fewer pieces that are higher quality. Not all pieces done by a renowned artist are masterpieces. You must take help from experts to recognise a masterpiece. For instance, an oil on canvas is perhaps the most expensive form of painting. Then is an acrylic on canvas, followed by an acrylic on paper. Then would follow watercolor on paper and charcoal on paper.

3. Buy art that you like and understand. Allocate a budget.

Buy art that you like. It is something you may keep for a lifetime, as you don’t know whether you will be able to sell it or not. Unlike other forms of investment such as stocks, it is worth remembering that art has an aesthetic quality that can, and some say should, be appreciated outside of its monetary value. Art is a long term investment. Also, prices of a renowned artist’s works do not necessarily shoot up when he dies. Art should not form more than 5% of your total investments.

4. Maintaining the artwork

Once you buy the art, you also need to incur the maintenance cost like insurance, storage cost. Also you need to take care of the artwork, like art should be stored in an environment that does not get direct sunlight.

5. Investing in emerging artists

Experts say you can look at investing in emerging artists whose works are available from Rs 1 lakh onwards. Though they may be a good option, it is difficult to predict who will make it big in the future. For this, you need to take advice from experts in the field.

6. Prints, limited editions

If you have limited budget, you can also invest in limited edition prints like serigraphy, lithography.

7. Evaluating an artwork.

In west countries, art has a much bigger market. These countries have institutes that value art. In India, we do not have certified institutes that value art. But the artwork can be valued by auction houses and galleries. Of late, even insurance companies are vaulting artworks.

Minimize Investment Risk by Investing in Hedge Funds

Hedge Funds are a method of alternative investing. It is a form of investment where funds are pooled and invested using different investment strategies to generate profits in a financial partnership between the fund manager and investors.

The fund manager is referred to as the general partner and investors are known as limited partners. The role of the limited partners is the investment of funds and that of the general partner is managing them. The investors are provided a hedge prospectus which provides information regarding key aspects of the fund, such as the fund’s investment strategy, investment type, and leverage limit.

As the name implies, Hedge funds function in a manner to ‘hedge’ or avoid risks. So, we see that the objective of Hedge funds is profit maximization along with risk minimization. They are meant to generate profits irrespective of the fluctuations in the market. They minimize risk by offering the investors to go long or short stocks. Shorting implies making money when the stock drops.

An investment manager manages the funds through a company that is distinct from the hedge fund and its portfolio of assets. The investment manager uses the support of the following service providers:

Prime brokers

They help in clearing the trade, provide leverage and short-term financing.

Administrators

They provide services of operations, accounting, and valuation.

Distributors

They basically deal with distribution of securities. A distributor can be an underwriter, dealer or broker.

Investment strategies adopted can be classified as:

• Discretionary/Qualitative: These are strategies selected by the general partner or fund manager.

• Systematic/Quantitative: These are strategies suggested by a computerized system.

Characteristics of Hedge Funds:

• Available only to accredited investors

Investors need to have a certain net worth before investing in Hedge funds.

• Variety of Investment Options

It can be invested in various areas such as land, real estate, stocks, derivatives, currencies, etc.

• Use leverage

Borrowed money is often used to enhance returns.

• Fee

They charge a management fee and performance fee.

The main benefit of investing in Hedge funds is that the risk is lower than other types of investments. They can be said to be uncorrelated with market indices. However, the fact remains that they are prone to some amount of risk. Hence, it is a good approach to be aware of all the potential risks before investing. It is also essential to select a fund manager who is experienced in the field.