For new and old investors, when contemplating an investment, there are things to know and to think about before selecting an investment. Making a great choice when starting your investment portfolio is as essential as making good decisions when adding or diversifying your investment portfolio.FUND AVAILABILITYIt is not sufficient to know what you are in a position to invest you need to know what you can absorb in the event of loss. The funds used for investing should be money set aside particularly for investing. When budgeting in the quantity of money that will be used for availability, be sure to include any expenses involved with the investing. Some expenses and fees can include paying for the following:* Broker* Financial advisor* Tax consultantIn addition, inflation should also be considered when estimating all costs involved in an investment.MAXIMUM EXPOSURE TO UPSIDE RETURNSPart of the money that is invested should be for greater risk investments. This is a good concept because of the possibility of high returns. This, like all investment money should be in a position to be absorbed if lost. If there are never any dangers, there are by no means any opportunities for high returns. Research should be carried out so that the risk is minimal and the investments are based on strong information. There are never any guarantees, but doing appropriate research will increase the chances of a good return in riskier investments. Consulting an advisor and some encounter investing will also help.LIMIT EXPOSURE TO DOWNSIDE RETURNSThis is making sure you have a good percentage of your investment in safe investments. The definition of safe has changed as the changes in the economy has trigger a lot of individuals to loose a large portion of investments that were considered safe at the time. Again, research, consulting, and experience will come in handy when investing. There should be sufficient low risk investments to maintain a stable portfolio.DIVERSIFY INVESTMENTSThere are various types of investments. When you have a diversified investment portfolio, it is much more steady. The different types of investments that can make an investment portfolio diversified consists of the following:* Asset mix-have a variety of asset classes like stocks, bonds, gold, treasuries, and so on.* Time preference-the assets should appreciate at different times so if there is a crash it will not impact all assets* More than one manager-even if your investment manager is sincere, he or she may not be ideal and make errors and with more than one manager, it can decrease the riskBE Aware OF RisksAll investments have risks and it will differ with the investments. Being knowledgeable of the risks will permit the investor to plan for absorption of loss. It will also help to accurately diversify an investment portfolio and balance low and high-risk investments to get the maximum return potential for investments. The risks of loss can also be in the shape of demands that can increase risk. For instance, the require to free up crash can make the need for a sale even if there will be a low return.Are you interested in traderinvest?