Q&A with Apricot: Why Do People Invest? Reason 2: Financial Goals

Let’s explore another key reason people decide to invest. In “Q&A with Apricot: Why Do People Invest? Reason 1: Inflation” we discussed how people use investments to fight inflation and preserve their money’s buying power or even grow it.

Beyond just beating inflation, investing is a powerful tool to help you reach your mid- and long-term goals.

Examples of goals you can consider achieving with the help of investments

• Funding your child’s education
• Buying a car
• Down payment for buying an apartment
• Early retirement
• A 3-month trip to Asian countries

Investing can be one of the tools to achieve your goals.

Investment Horizon: Matching Goals to Strategies

Your investment horizon refers to the length of time you expect to hold your investments before you need the money. This time frame plays a crucial role in determining the types of investments that are most suitable for you.

• Mid-term goals and medium-term investment horizon: People investing for mid-term goals often prefer safer investments to minimize risk in the medium-term horizon (1-2 years) since they have less time. Bonds are a popular choice for such investors, offering higher interest than other mid-term options and carrying low risk.
• Long-term goals and longer investment horizon: Investors focused on long-term goals have more time to grow their money and ride out eventual market ups and downs. Stocks, long-term bonds, and index funds can offer investors greater potential for capital appreciation in a longer investment horizon (3+ years). Plus, the power of compounding really kicks in over longer periods – that’s when you earn returns not only on your original investment, but also on the gains you’ve made over time.

The Right Investment Strategy for You

The right investment strategy is the one that matches your goals and how much risk you’re comfortable with. It depends on:

• Your time horizon: How long you have to invest to achieve your goal.
• Your risk appetite: How much risk you can take.

Whether you’re a seasoned investor or new to the world of investing, Apricot Capital offers a range of investment opportunities to suit your needs.

Ready to Start Investing For Your Goals?

Open a brokerage account for free with Apricot. No minimum deposit requirement, free yearly servicing, low commissions. Download our Apricot app from the App Store and Google Play.

Want to learn more about investing? Check out other articles in our Q&A series and our Glossary.

It’s important to remember that investments are subject to market fluctuations and carry inherent risks. Consider your financial goals and risk tolerance before investing. 

Apricot Capital is regulated by the Central bank of Armenia.

*The examples in this text are for illustrative purposes only. This does not constitute investment advice or a recommendation to buy or sell any specific investment instrument. The past performance mentioned in this text is not indicative of future results.