Definition of investment criteria: are the guidelines, rules of decision that an investor takes into consideration before deciding whether to invest or not and in what type of assets will invest their money. There are no unique rules, since it depends on the risk profile and level of profitability expected by the investor.
What criteria are taken into account when investing?
- Study of the risk of the financial product.
- Cost-benefit analysis
- Estimate the net present value, as well as the internal rate of return, to study the economic viability of said investment.
- Build a financing model, taking into account different scenarios, interest rates, maturity deadlines and other conditions.
- Carry out a microeconomic analysis of the sector where you expect to invest.
- Study the macroeconomic situation of the country where you will invest your resources.
- Prepare an analysis of fixed and variable costs and obtain the optimal structure.
- Study competition and demand.