Prognopedia

While investing, there are basically 3 factors to be considered for making a good investment. They are Safety, Liquidity and Returns. Safety in an investment is when an investment you make gives you good returns with relatively less or negligible risk. Liquidity is the ability to convert any given asset into cash quickly. In case of investments, liquidity is basically the amount of ease with which you can buy and sell the asset you invest in. Returns are the monetary benefits you earn through your investment. Depending on the tenure of investments, the weights allocated to these factors change.

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