In this article, we will be looking at the beginning steps of an investment journey and how you can get started. Please note that we do not offer any financial advice and this article is for educational purposes only. Investors should conduct their own research when considering investments.
Understand your Investor Personality
Whether you’re new to the investment world or have been placing your capital into various opportunities for a while - it’s always important to understand your investor profile and personality.
What do we mean by personality or profile?
An investment personality is something that is taken into consideration when it comes to individual investors looking to invest their capital into products, projects or businesses. It determines the type of investor you are and can be used in consideration when planning and making your investments. In simple terms, it’s your it’s your financial risk profile or risk appetite and it will take into account varying factors which will decide whether an investment opportunity is a good fit for you, or whether you are suited to a particular investment opportunity. Various factors such as your age, financial situation, financial history, your current circumstances and your overall investment goals will all be considered.
It’s vital that you begin asking yourself questions such as ‘What kind of an investor am I?’, ‘how much money is financially viable for me to put into a project?’, ‘how much disposable capital can I afford to comfortably risk’ and ‘how much risk is too much risk for me?’. By asking and answering these questions before considering investment options, it will start to become clear what type of investor you are.
In addition, when signing up to LEOcrowdfunding, you will be required to take an appropriateness test as part of the 'Investor Readiness' process, which will determine whether you are eligible to begin investing in our live and open crowdfunding projects. You can also browse our previous projects and case studies and register your interest, so that similar future projects or further projects by the same developer, can be easily identifiable to you.
Keep Track of your Investments
Keeping track of all of your investments is another key element when you begin to invest capital into different opportunities. Whilst some people might be more comfortable with investing capital into a project and then allowing it to run its course, this approach could not be for everyone.
It’s imperative that you keep track of how many projects you have put capital into and how they are performing. When signing up to LEOcrowdfunding, you will have access to an investment portal which will make this task all the more simpler.
Many consider Investment to be all about the long-term goals and how you could potentially increase your financial stabilty in the future. Before you begin investing, look at what your long-term goals and targets are. Investors should never hold the mind-set that investments will always make them a lot of money quickly. In reality, thinking long-term is typically the approach to take when considering investment appetite. Individuals invest money for different reasons, including to potentially earn competitive returns, reach their own financial goals and to save for retirement or their future families. However, no matter the personal reason, it’s important to think long-term about investing.
When it comes to investing in crowdfunding projects, you are putting your capital at risk and you should consider the possibility that any one of the projects you have invested in, might not come to fruition. In addition, you won’t be able to remove your investment quickly. It could be a long time before the investment is complete, or a profit is potentially generated, so setting out long-term goals, your risk appetite and understanding the time that building your investment portfolio will take, are all important steps to consider. You should always bear in mind as well that returns are not guaranteed.
If you would like to know more about what we do here at LEOcrowdfunding, feel free to fill in our contact form on our website. Or, if you are starting your investment journey, read our post ‘How To Begin Investing With LEOcrowdfunding’ post, which will explain how you can make an account with us and take our ‘Investor Readiness’ test, which will prepare you for starting your investor journey with us.
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