OBJECTIVE OF INVESTMENT

Definition : An investment is an activity of increasing returns and wealth to the investor based on the initial amount that was invested.

However, good investment policy should contain some of the following characteristics :

• It should be for the long term (5-20 years)
• It must have an objective (e.g. child education, housing, pension...)
• It must have a time plan (withdraw by the year 2020...)
• The interest/dividend must accumulate over a time period
• It must outperform inflation rate and cost of living
• It must be moderately safe (minimum risk)
• It must grow
• It should not be withdrawn due to current short-term turbulence
• The investor should be disciplined, focused and patient

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