Assume a distance wealthy aunt left you in her will. After taxes and fees, you received $200,000. How would you invest these funds? What are the factors to influence you making those investment decisions?
The investment of these funds will depend on the needs of the individual and what are the expectations of returns in the future. The factors to be considered are the risk appetite of the investor, the condition of the economy and the business cycle we are currently in, the periodic requirements and frequency of returns, etc. We can have the entire amount split between a variety of asset classes like government securities, commercial bonds, stocks, venture capital, real estate, precious metals, etc. The split between the asset classes will depend on the factors mentioned above.
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