Capital Investment Manual

In the fast paced world of commerce making money requires instant financial capital investment decisions. The capital investment manual is an attempt to provide the high net worth investors (HNIs) with a ready investment recokner to pick the correct options. The need for the capital investment manual which explains various capital investment instruments along with the likely annualized returns makes it easier for the investor to choose from array of financial products which now dot the market. Increasingly, we find the investor with high liquidity unable to arrive at any decisions inspite of high quality capital investment advice available to them. The reason behind this indecisiveness stems from the recent events in the financial world where in the mightiest fell down like pack of cards.

Things to look forward to in a capital investment manual are: 1. Trading Products 2. Financial Instruments 3. Equity Investment opportunities 4. Banking and Insurance. Each of these along with the due diligence procedures to be adopted before the actual investment can help the investors to be better prepared for any eventualities. The financial markets across the world are in extreme turmoil, making an informed decision is a must for the prospective high net worth investors. Once we have known the types of options available to us, then the question of analyzing the pros and cons of each is the next task of a good capital investment manual.

A single option such as Trading Products has four different types to choose from for HNIs. The four trading products are: Foreign exchange market, spot metals, futures market and shares. These are all extremely volatile market instruments with immense money making possibilities. It is the duty of a capital investment manual writer to make you aware of pitfall but also to explain the method to enter these markets and survive in them.

The knowledgeable capital investment manual will provide you detailed instructions about the differences between these trading platforms and how to choose a good broker who will secure your interests in the falling markets.

An interesting feature of all four trading platforms is they are visible i.e. online. The client can monitor and instruct the broker about the moves he wishes to take with rising and falling markets. The capital investment manual should warn the readers against overreaching the online mechanism instead following the cool advice of professional brokers. The successful trading in all four markets is possible only on the basis of research and analysis of the data provided by the relevant credit rating agencies. The successful investor is not necessarily a good reader of the markets; this observation must be clearly brought out in the capital investment manual.

Financial instruments are all those legal devices which have got a monetary value. This will include a simple instrument as bank deposits receipts to complex derivative instruments. Each of these has different objectives and structures. The capital investment manual should emphasize the importance of these bills of exchange or commercial papers which come handy and can be liquidated with higher returns in a bearish market.

Before we move to the next segment of instructions that need to be included in the capital investment manual, we have to focus on the necessity about adopting a balanced approach in making an intelligent investment decision. In the uncertain times that we live in, the best bet is to spread yourself evenly instead of risking your portfolio of investments in one single investment platform, even if it looks lucrative and tempting.

The equity investment option is with us since the time of industrial revolution in 1750s. The problem with this is which one is better than the rest can never be ascertained. The commercial banks, financial institutions, mutual funds, pension funds mean well when they approach you to buy the stake in the listed or unlisted companies and trading firms. The capital investment manual should focus on dos and don’ts about making equity investments. The direct investments in the businesses of the known and relatively known companies do succeed. Based on sound advice from your chartered accountants and legal attorneys alone you should open yourself to becoming an equity-investor.

The last option which is banking and insurance are safety valves against any market eventualities. The capital investment manual should insist upon the HNIs to allocate certain quota of funds to this as well. This provides stability and long term protection to you and your family in case of any accidental occurrences including death. We live in borderless world. Hence the opportunities of investment have broadened. The capital investment manual should emphasize the need for an investor to learn more about the ways of investing. As we get ready for cross border investments through various market instruments we can no more be just conversant with our local economies and market regulators. We need to develop our `intellectual capital’ before we accept the challenges of investing our money abroad.

There are many experienced investment professionals who can help you to know more about the investment opportunities abroad. The capital investment manual can give names and addresses of such advisory service providers. The agencies like Credit Suisse are the pioneers of the concept of what they call “to help source, analyze, manage and monetize investments across multiple industries and geographies”.

The capital investment manual should explain the profit making potential in venture capital investment opportunities. This sunrise industry with its low investment and high returns has been hogging the headlines for quite some time now. In fact, it is believed that much of the IT boom in 1990s was fueled by the venture capitalists. They made lot of money in the shortest possible time and some of them even rank in the list of world’s richest millionaires.

The mantra for making money can be an apt title for the capital investment manual. More than anything else making money by investing is easier said than done. The people with high net worth who take risk are brave souls simply because ultimately all the investment is faith driven and instinctive. Many fail but most succeed because they learn from the mistakes, how they do, is something which the capital investment manual can help us understand better.