What you should consider before investing
“A prudent investor: Knows his investment, knows his intermediary, knows his risks, knows his rights and obligations and permanently controls his investment.”
Keep in mind the following aspects when making an investment decision:
- Establish your priorities: Have clear objectives for your investments based on life priorities and expectations. Establish a clear time horizon for your investment (short, medium or long term) and an appropriate level of risk tolerance.
- Know your investments: Before investing, it is essential to read the documents that describe the investment, fact-sheets and anything related to what is being offered. Be careful and always pay attention to any relevant factors that may have an effect on your investment. Keep in mind that every investment has its risks, therefore if you have any doubts, ask about them.
- Make sure you understand where and how your money is being invested, as well as the implicit risks, costs and expenses this investment may bring with it.
- Decide what you wish to invest in. Never invest in an instrument or financial product you don’t understand.
- Any investment decision you make must be based on verifiable information.
- If you make the decision to invest, keep in mind that there is a mandatory contract that you must sign with the brokerage firm.