A SMART investor is someone who makes informed investment decisions after understanding the risks and rewards of an investment, analyzing the market situation, and having a long-term investing mind-set. Being a SMART investor can help an individual achieve financial goal and freedom.
The key characteristic that distinguishes a SMART investor from others is how they react when the market is not performing well. A smart investor will not panic and sell their investments when the market takes a downturn. Instead, they will stay calm and focus on their long-term goals.
A Smart investor is one who consider following points before investing: -
- Have an investment goals before investing
- Being aware of risk each investment products carry
- Selecting right investment products for the investment
- Conduct market research before investing
- Diversify investment portfolio
- Invest for a long term
- Periodically review investment portfolio