Investment Ideas

DEFINITION of 'Investment Ideas'

Specific views, plans or ideas on ways to invest money effectively. Investment ideas typically involve the expertise and advice of an investment advisor who recommends different investment tools based on individual circumstances.

BREAKING DOWN 'Investment Ideas'

One of the main factors determining what investment idea a particular investor will employ depends on that person's stage of life. Investors who are young can take on more risks, and an advisor will likely recommend stocks or mutual funds to younger investors. Investors who are approaching retirement, however, will most likely find it more beneficial to take on lower-risk, short-term investments such as bonds and T-bills. Another factor that affects investment ideas is the risk-return tradeoff. Each investor has his or her own sensitivity to risk, which will influence investment decisions.

RELATED TERMS
  1. Advisor

    1. The person or company responsible for making investments on ...
  2. Investment Advisor

    As defined by the Investment Advisors Act of 1940, any person ...
  3. Investment Advice

    Any recommendation or guidance that attempts to educate, inform ...
  4. Registered Investment Advisor - ...

    An advisor or firm engaged in the investment advisory business ...
  5. Investing

    The act of committing money or capital to an endeavor with the ...
  6. Investment Fund

    A supply of capital belonging to numerous investors that is used ...
Related Articles
  1. ETFs & Mutual Funds

    What's an Investment Advisor?

    An investment or financial advisor makes investment recommendations and analyzes securities.
  2. Financial Advisor

    Investing Other People's Money: 5 Things You Must Know

    Learn the five things an advisor should know before investing another person's money, with a focus on the FINRA "know your customer" rule.
  3. Retirement

    Why Financial Advisors Disagree

    Financial advisors sometimes offer conflicting opinions that can be confusing for many investors.
  4. Managing Wealth

    The Cost And Consequences Of Bad Investment Advice

    Is your advisor working for you, or for him/herself? Find how to tell the difference.
  5. Financial Advisor

    The Pros & Cons of Alternative Investments

    Alternative investments are becoming popular investment vehicles for individual investors. Here are the pros and cons of adding them to your portfolio.
  6. Financial Advisor

    A Financial Advisor’s Job Is Not to Beat the Market

    Understand what the real job responsibilities of a financial advisor are, and why they do not include picking investments that beat the market.
  7. Financial Advisor

    How to Know When to Pass on an Investment

    Knowing what to invest in is important, but knowing what not to invest in is equally important. Here's how to decide when to walk away.
  8. Entrepreneurship & Small Business

    Using Licensing to Rent Your Ideas to Large Companies

    Learn how to license your ideas to get your groundbreaking product on the shelves without raising capital or having business expertise.
  9. Trading

    Top 4 Signs Of Over-Diversification

    Learn how to spot over-diversification in your portfolio and find out why some financial advisors are motivated to do it.
  10. Financial Advisor

    What are the Different Types of Financial Advisors?

    There are two primary types of financial advisors: investment advisors and investment brokers, who work for broker-dealers.
RELATED FAQS
  1. What are some of the limitations of only looking at the rate of return for an investment?

    Learn why only reviewing the rate of return for an investment poses a risk to the investor and what additional factors should ... Read Answer >>
  2. I have 40K to invest. What would be the best? Mutual funds, treasury bills, or shares ...

  3. How should I invest the money I keep on my IRA?

    For individuals who are just starting to save, certificates of deposit can be a good place to start, but the interest rates ... Read Answer >>
  4. What investments have been the poorest historical performers?

    Learn about low performance investments and how they are used by investors. Find out which investments lose funds and how ... Read Answer >>
  5. How can I use risk return tradeoff to determine my risk tolerance and investment ...

    Learn how an investor can use the risk-return tradeoff to determine what assets to include in a portfolio, and understand ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center