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INVESTMENT ANALYSIS : A BRIEF ANALYSIS 

Investment analysis is a broad term for many methods for evaluating investments, industry sectors and economic trends. It can include charting past returns to predict future performance, selecting the type of investment that best suits an investor’s needs or evaluating individual securities such as stocks and bonds to determine their risks, yield potential or price movements. Investment analysis is the key to a sound Portfolio-management strategy.

The aim of investment analysis is to determine how an investment is likely to perform and how suitable it is for a particular investor. Key factors in investment analysis include the appropriate entry price, the expected time horizon for holding an investment and the role that the investment will play in the portfolio as a whole. Investment analysis can also involve in evaluating an overall investment strategy in terms of the thought process that went into making it, the person’s needs and financial situation at the time how the portfolio performed and whether it is the perfect time for correction or adjustment. Investors who are not comfortable doing investment analysis on their own can seek advice from an investment advisor or another financial professional.