MUTUAL FUND ASSOCIATION OF TRINIDAD AND TOBAGO
"STRENGTHENING THE ENVIRONMENT FOR INVESTOR CONFIDENCE"

How to develop an Investment Plan

  • Establish financial goals

    Investors need to establish their financial goals with respect to the requirements from the investment and time horizon for realizing these goals. Goals may be immediate such as making a down payment on a home, paying for a wedding, or creating a university fund. Long-term goals could be like paying for university or retirement. Establishing goals helps to assess how much money you need to invest, how much the investments must earn and when the money will be required.

  • Market expectations

    Investors need to study the financial markets to understand the options available to them and forecast realistic market expectation of future performance. Setting realistic expectations about investments and about market performance is an important part of the investment plan.

  • Limitations

    Investors may need to make payments in the near future which restrict them from committing large sums of money for an indefinite period.

     
  • Risk Tolerance Levels

    All mutual funds involve investment risk, including loss of principle. To generate some returns a certain degree of risk is inevitable. The principle of investing is known as the risk/ reward tradeoff.