Investment Rule

 One of the best Investment Rule is to never put eggs in One Basket. This means we have to diversify our Investment. This is because if one investment is in loss, it will risk whole of your funds. This is the investment Rule in financial Market. Once the relative risk of the portfolio is determined, it's return is calculated. For this the correlation of Returns of various Assets are calculated. The correlation is an indicator of relative risks. Thus a wise investment decision is the one in which there is a correlation between assets in portfolio Such that it provides a positive return.

 

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Realistic Investor

 A realistic Investor is the one who decides the return an investment should provide on the basis of realistic logic. For example we cannot expect an investment of $100 to give $1 Million return in a short period of time. Some might feel it is very unrealistic at all. Thus an investor should decide to earn on the basis of their logic rather than other things. An investor should always try to be realistic because it will protect his/ her Investment. Thus realistic Investor is what an investment soughts. 

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