“Don’t just invest; instead have a plan for your investment.”
Are you planning to secure your money in a fund for the long term or the short term?
The Long Term Investor
You may want to consider the Growth and Income Fund (GIF), Global Bond Fund,US$ Income Fund or the suite of Retirement Funds from the UTC. These growth funds seek to build your assets over time.
The Short Term Investor
If however you are thinking of a shorter time- period to invest, TT$ Income Fund is the fund for you.
If you’re also concerned about safety and access to your money, the Money Market Fund may be a good choice. They
also provide a regular income flow.
“There is no such thing as the “right” investment - only investments that are right for you.
In your mind, list the reasons why you’re considering investing.
Of course, your investment decision will depend on your individual financial situation, short term or long term goals and other personal factors.
Consider these points as it pertains to matching your mutual funds to your goals:
When will you need your money? This is an important factor in deciding how much risk you can undertake. Thus, the more time you have to invest, the more your money can work for you.
This is another crucial factor that a first-time investor must take into account. If you are approaching retirement, you may want to avoid high risk funds, since you will have less time to make up for any short term losses.
On the other hand, if you are under thirty, you may feel comfortable investing in higher risk funds that offer greater returns.
Risk and Rewards
Ideally, we would all prefer safe investments that offer high returns. Unfortunately, in the real world the two never go hand in hand – higher returns always involve a higher degree of risk.