There are several basics of investment that should be considered when making investment decisions. Some of these include as below:

• Investment goals: 

It is important to have clear investment goals before making any investment decisions. These goals may include saving for retirement, purchasing a home, or funding a child's education. For a Company, it involves business expansion and increasing shareholder returns.

• Risk tolerance:

Investors should consider their risk tolerance when making investment decisions. This includes understanding how much risk they are willing to take on and what their capacity for risk is based on their financial situation.

• Diversification:

Diversification is the process of investing in a variety of assets to spread out risk. By diversifying, investors can minimize the impact of loss in any single investment on their portfolio.

• Time horizon: 

The time horizon refers to the length of time an investor plans to hold an investment. It is important to consider the time horizon when making investment decisions as it can impact the type of investments that are most suitable. While deciding upon time horizon, an investor should consider the cash flow needs with emphasis on short term liquidity of funds.

• Liquidity: 

Liquidity refers to how easily an investment can be converted into cash. It is important to consider liquidity when making investment decisions, as some investments may be more difficult to sell quickly than others.

• Fees and expenses:

Investors should be aware of any fees and expenses associated with an investment. This can include management fees, transaction fees, and other expenses that can impact investment returns.

• Tax implications:

Investors should also consider the tax implications of their investments. This may include understanding how different types of investments are taxed and how taxes can impact investment returns.

• Research: 

After considering the above basics, perform comparative analysis based on own research on fund’s performance and investment strategy including payouts. This will also help to understand about the fund in which you are investing. The Bottom line is as you earn the profits, you also have changes to have losses. Therefore, it is better to perform risk assessment before taking any decision.

In summary, when making investment decisions, it is important to consider investment goals, risk tolerance, diversification, time horizon, liquidity, fees and expenses, tax implications, and research. By considering these factors, investors can make informed investment decisions that align with their financial goals and objectives.