5 things to consider before you commit to an investment

Don't just save your money, invest. (istock)
  • People invest so they can make returns.
  • But some people end up losing their investment because they fail to consider certain things.
  • Here are five questions you should consider and answer satisfactorily before you invest.

Investing your money is a good thing. But an investor must always ensure they invest right.

People often invest their hard-earned money and expect returns after a certain period. But some do not receive their expected returns possibly because they do not invest right. Some lose their principal as well as interest because they asked no questions before investing

Here are 5 questions to consider before you invest.

  • Is the seller licensed?

The appropriate regulatory authority must licence the investment company. If they have not been licenced you should not do business with them. Remember to check if their licence has been revoked at a point and ask questions.

  • Is the investment registered?

Before you start a business you must be registered. Find out if the investment company is registered. What is the description of the business of their registration certificate? Keep in mind that some register and do a very different business from what they registered.

  • How do the risks compare with the potential rewards?

You are investing to receive some returns in the future. You should consider if the risk involved is worth the returns you will receive.

  • Do I understand the investment?

You should get an expert to explain investment into details for you before you take a decision. You should particularly understand the type of investment you are getting into.

  • Where can I turn for help?

In case the investment company collapses where do you report to? How do you at least get your principal investment back? 

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

King Kaka shares 11 sources of income earning him millions

King Kaka shares 11 sources of income earning him millions

Fired TV anchor now a Matatu tout in Nairobi [Video]

Fired TV anchor now a Matatu tout in Nairobi [Video]

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows

Willy Paul wins against Diana Marua in court

Willy Paul wins against Diana Marua in court

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Kamene Goro opens up on fallout with Andrew Kibe

Kamene Goro opens up on fallout with Andrew Kibe