- Published: November 14, 2021
- Updated: November 14, 2021
- University / College: University of Surrey
- Language: English
- Downloads: 40
Investment Analysis is a classical application in Long-Range Planning. It deals with the investigation of uncertainties, the evaluation of alternatives, the answer to “ What-if” questions. The study of how an investment is likely to perform and how suitable it is for a given investor. Investment analysis is key to any sound portfolio-management strategy. Investors not comfortable doing their own investment analysis can seek professional advice from a financial advisor. An analysis of past investment decisions. An investment analysis is a look back at previous investment decisions and the thought process of making the investment decision.
Key factors should include entry price, expected time horizon, and reasons for making the decision at the time. For example, in conducting an investment analysis of a mutual fund, the investor would look at factors such as how the fund has performed compared to its benchmark. The investor could also compare performed to similar funds, its expense ratio, management stability, sector weighting, style and asset allocation. Investmentgoalsshould always be considered when analyzing an investment; one size does not always fit all, and highest returns regardless of risk are not always the goal.
For any beginner investor, investment analysis is essential. Looking back at past decisions and analyzing the mistakes and successes will help fine-tune strategies. Many investors don’t even document why they made an investment let alone analyze why they were wrong or right. You could make a proper decision, extraordinary events could lose youmoney, and if you didn’t analyze it, you would shy away from making the same decision. Finally to conclude I made measurement for interpretation and better solution, which may helps the company performance.