Investment Analysis

Investment Analysis
  1. 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.

  2. 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.

  1. 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. Investment goals should 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.

  2. 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 you money, and if you didn't analyze it, you would shy away from making the same decision.

Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Capital Investment Analysis — A budgeting procedure that companies and government agencies use to assess the potential profitability of a long term investment. Capital investment analysis assesses long term investments, which might include fixed assets like equipment,… …   Investment dictionary

  • Investment decisions — are made by investors and investment managers. Investors commonly perform investment analysis by making use of fundamental analysis, technical analysis and gut feel. Investment decisions are often supported by decision tools. The portfolio theory …   Wikipedia

  • Investment Analysts Society of Southern Africa — The Investment Analyst s Society of Southern Africa (IAS, IASSA) is the liaison body for the financial analyst profession in South Africa. It is based in Johannesburg South Africa, but also has members from Cape Town, Durban and throughout the… …   Wikipedia

  • Investment banking — Investment banks profit from companies and governments by raising money through issuing and selling securities in the capital markets (both equity and bond), as well as providing advice on transactions such as mergers and acquisitions. To perform …   Wikipedia

  • Investment management — is the professional management of various securities (shares, bonds etc.) and assets (e.g., real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds,… …   Wikipedia

  • Investment club software — Investment Club Accounting Software is typically used to manage:* Member Subscriptions * Ownership / Unit Valuation System * Investment Transactions * Financial Reports * Income / Expenditure transactions * Performance reports * Manage tax… …   Wikipedia

  • Investment style — refers to different style characteristics of equities, bonds or financial derivatives within a given investment philosophy. Theory would favor a combination of big capitalization, passive and value. Of course one could almost get that when… …   Wikipedia

  • Investment Technology Group — Infobox Company company name = Investment Technology Group, Inc. company type = Public (Nyse|ITG) foundation = 1987 location = New York City, USA key people = Robert Gasser (President and CEO), Maureen O Hara (Chairman of the board), Howard… …   Wikipedia

  • Investment Advisor — As defined by the Investment Advisors Act of 1940, any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications. An… …   Investment dictionary

  • Investment Thesis — The beliefs that investors decide to use when determining what investments to purchase or sell, when to take an action and why. An investment thesis helps investors establish goals for their investments, and measures whether they have been… …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”