5 FUNDS YOU SHOULD NEVER PUT IN INVESTMENT

5 FUNDS YOU SHOULD NEVER PUT IN INVESTMENT

The main objective of the investment is to make a profit. Investments indeed provide opportunities for capital gain. This is why investment will continue to be a wise decision to make whenever you are looking at how best to create wealth for yourself.

However, investment is a speculative risk, as it presents an attractive opportunity for capital gain, it could also turn in the opposite direction, this is why professional advice is very important when going into an investment. Here are the five funds you should never put into investments:

Children School Fees
House Rent
Food Allowance
Borrowed Funds
Business Capital

Children's School Fees:?School fees are paid every three months. If you are presented with a fantastic opportunity to double or triple your funds within two or three weeks and are tempted to invest your children's school fees into such investment. You may be lucky to recover your capital and profit back, but at the same time, the investment may become unfavorable, and you may be faced with the embarrassment of your children being sent out from school.

House Rent:?Once you have?your house rent, pay it immediately to your landlord, even when the rent is yet to be renewed, that gives you peace of mind and presents you as a responsible tenant to your landlord. Delay is dangerous, in the course of holding on to the house rent you might be introduced to an irresistible investment opportunity and may wish to quickly participate in the investment opportunity, this is because everybody prefers more to less. You might be favored to make a profit from that investment, and you might also not be favored to make a profit from the investment. This could lead you to default on your house rent obligation.

Food Allowance:?When?a?Ponzi scheme is being introduced to you that you will earn N200,000 with N100,000 investment within fifteen minutes. This is a very fantastic bait everyone would love to participate in, but you may end up setting yourself up for hunger for the rest of the month if the scheme goes under.

Borrowed Funds:?Different forces determine opportunities in the investment market, using the stock market as an example, There are:

Forces of demand and supply for the stock
Macro-economic factors
The corporate disclosure of a company
The dividend yield of the stock
The corporate action of a company

The above indices affect the performance of the shares you are investing in. If you have borrowed money to buy shares and when the financial result of the company of the shares you bought is released and is not favorable to the investors, investors may start selling off their shares, when the supply is higher than the demand, this will crash the share price of that company and lead to a loss for investors. If an investor had borrowed money to be refunded at a particular time when he thinks he should have made a profit from his investment and realized, he had made a loss, how would a such investor be able to pay up the loan?

Business Capital:?When you invest your business capital, what you are simply doing is, putting down one venture to build another. Such an act will never produce two capital ventures but one if not ending up with nothing. Nurture your business to earn profit and invest the profit to earn additional profit from an investment.

From the above discussion, I would like to recommend the following investment tips:

Seek professional advice before embarking on an investment
Define your investment objectives
Never look for quick fix investment
Be ready to wait patiently for the right time to make the maximum return on your investment
Invest the money you can leave for some time. Examples are:
Savings
Profits
Bonuses
Pay rise
Inheritance

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