Investment Theories Related to Personal Finance

Kimberly Watson, Editor in Chief
August 15, 2012 /

Personal finance is a term that has an extreme influence on the lives of every person in any country, no matter their standing or lifestyle. Of particular influence to personal finance is related to investment theories and how to take advantage of those that are genuine and advantageous.

This creates a need for financial education regarding their awareness of investment opportunities and a complete understanding of the operation and functioning of various companies. This could qualify any investment theories concerning the public securities of a particular company.

As an investor your investment theories could be dictated by your own financial ambitions with the primary goal being growth of your investment over a given period of time. Another aspect that could influence your investment relates to the type of product in which the company is involved, for example; liquor and tobacco or their involvement in any discriminatory practices.

This is called socially responsible investing. However, while the investment theories related to socially responsible companies is admirable, there must be a potential for financial gain. This is logically the prime reason for your investing in the public securities of a specific company.

Among the various investment theories to consider should be at least one that is closely related to your specific investment ambition and personality. In the international marketplace there is a wide and varied range of investment theories that would conform to most investor criteria. Those that could be considered most successful are termed growth investing, value investing and income investing.

A computer search would reveal a listing of a large variety of investment theories that are used and are available to you. This could be a direction as to the most profitable method of investing your money under any of the specified strategies or tactical investment theories.

It is advisable to for any investor to obtain the services of a qualified, established financial consultant regarding investment theories and decisions. For those investors who have attained or are nearing the age of retirement, an inclination towards a more conservative approach for capital preservation could be called for.

 

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