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OBJECTIVES OF INVESTMENT-ANALYSIS

An investment-objective is a set of goals that determines an investor’s financial portfolio. A financial advisor determines the optimal strategy for achieving the client’s goals using an investment objective. An investor’s risk-tolerance and time-horizon help to determine an investment objective. Investment analysis helps to determine whether the investment is worth it or not. It includes steps like gathering data from reports, financial statements and economic indicators and then analyzing them to interpret the percentage return and the possible risk from such investment. Investment analysis also determines some factors such as the investment’s time horizon, expected return and risk tolerance of the investor. Overall a proper investment analysis also involve in evaluating or creating a proper financial strategy. Researching and evaluating a security or an industry to predict its future performance and determine its suitability to a specific investor are the key objectives of investment-analysis.