commerce Bahrainthismonth.com December 2024 79 Where can you invest? Based on your risk appetite, you would have options to invest your savings in several ways. I have included a handy table here for you to get an idea of the options and their risk return profiles. Mutual Funds and Systematic Investment Plans (SIP) Of these many options, one of the highest returns come from stock markets, because the risk is higher. How do you mitigate that risk? By choosing options where you don’t have to pick a specific stock, you can give the money to an expert to invest it for you through mutual funds. In return, the institution that provides the mutual fund, will charge you fees (usually in the range of 1-2 percent annually). SIPs are specific plans where you can invest a pre-determined amount of money each month. While options for mutual funds have been historically limited, things are changing now. In the UAE and Saudi Arabia, there are opportunities available which even nonresidents can partake in for a minimum amount of BD500. With new products launching fast, more countries are likely to offer these options. Investment is a game of trust, in yourself in the regulatory environment, banking system and in the published information available to you. These are the ingredients you have, and you must choose what you want to create. You know what each element means to you, but can you accept the final product? Your risk appetite is not really about risk, it’s about a need for reward and understanding what drives you and what you’re willing to give up for that end goal. Choose mindfully. Pria is an experienced business consultant who works as a business coach and advisor helping clients with their strategy, business plans and idea assessments. You can follow Pria on Instagram @guide_my_idea and learn more about her experience at priamasson.com READ WOMAN THIS MONTH IN ANY FORMAT CONVENIENT TO YOU: to keep you abreast of everything that’s happening in and about town. Print | Online | Digital
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