Investments should accompany ambitious goals

I came across several investors who just dump their hard earned money into the mutual funds or stock markets just because they are fascinated by the huge returns they see from the mutual funds in the previous years. Be it the advise from friends, or from the agents, people should now realise that the investment they put into the market should always have a goal behind it.

The recent crash in the stock market should have taught a lesson to all those who invest with greed just wanting the returns without even being aware of the risk that is involved with equities. It is not with a sense of hatred or anything of that sort i utter these words, but only to educate those who fall a prey to this bad quality called greed. I have seen friends investing in the market for achieving goals like buying a car, for the sake of higher education of their children and anyother achievable and meaningful goal. They are correct and everyone should have a goal predetermined before putting their money into the stock market. Few things that should be decided before investing are :

• Decide the purpose for which you are investing
• Choose a reasonable time frame. Expect reasonable returns.
• Choose good quality funds or stocks to invest.
  
• Stay invested long for term.
  

Every investment that come into the equity, either stocks or the mutual funds, should have an ambitious goal behind it. Similary every investment should have a timeline predetermined along with the goal. At the same point, do not be over ambitious as well. After all, you cannot expect to be a crorepati in a span of 2 or 3 years. Expect reasonable returns and invest in well chosen and good performing funds.