What Is Investment Decision Making?

Definition: The Investment Decision relates to the decision made by the investors or the top level management with respect to the amount of funds to be deployed in the investment opportunities.

Simply, selecting the type of assets in which the funds will be invested by the firm is termed as the investment decision.

What are the types of investment decisions?

Types of Investments

  • Stocks.
  • Bonds.
  • Investment Funds.
  • Bank Products.
  • Options.
  • Annuities.
  • Retirement.
  • Saving for Education.

How do you make an investment decision?

Before you make any decision, consider these areas of importance:

  1. Draw a personal financial roadmap.
  2. Evaluate your comfort zone in taking on risk.
  3. Consider an appropriate mix of investments.
  4. Be careful if investing heavily in shares of employer’s stock or any individual stock.
  5. Create and maintain an emergency fund.

Why is investment decision important?

IMPORTANCE OF INVESTMENT DECISIONS. a) Such decisions are importance because they will influence the company’s size (fixed assets, sales, and retained earnings). b) They increase the value of the company’s shares and thus its credibility.

What is meant by long term investment decision?

Answer: Long term investment decisions means decisions regarding purchase of assets having life more than 1 year usually Properties,shares,Debs,Bonds and so on.These decisions are taken usually by Top level management. M.