THOUGHT OF THE WEEK
DO’S AND DON’TS OF INVESTMENTS (PART 2) DO’S
4. Do invest small rather than not at all.
Before you do any investing, your first financial priority should be to accumulate some amount of emergency savings. That is how to avoid getting into financial trouble if you have a large, unexpected expense or you lose your job or business income.
The ideal thing is that everyone should have a minimum of three to six months’ worth of his or her living expenses in an investment account. If that seems unattainable, start by saving a reasonable amount.

DON’T’S
1. Don’t be led by emotions
When you invest, your money is at stake and often affects your emotions. This is why it is important to have a clear head when investing as your judgements can be clouded by your emotions. You should always have an exit strategy in mind. Multiple studies show that investment decisions based on emotions lead to lower returns, compared to a well-thought-out plan.

2. Don’t invest blindly
You are likely to get unsolicited investment advice from a lot sources. Never invest blindly based on free tips even if they sound very appealing. Do not take advice from someone who is not a licensed investment advisor or who does not have your best interest in mind. Trust your investment advisor to guide you in the right direction when it comes to investment
decisions… (To be continued)

Disclaimer
This weekly report is the copyright of NIMED Capital Ltd. (NIMED), an investment banking company licensed and regulated by the Securities and Exchange Commission (S.E.C.) of Ghana as Investment Advisers as well as the National Pensions Regulatory Authority (N.P.R.A.) as an approved Pension Fund Manager. Information and opinions herein have been compiled or arrived at based on information obtained from sources considered reliable; we therefore do not hold ourselves responsible for its completeness or accuracy. All statements of opinion, projections, forecasts, or those relating to expectations regarding future events or performance of investments represent NIMED’s own assessment and interpretation of information currently available to NIMED, which are subject to change.