24.

Which characteristic of an investment is most important when devising a savings plan?

Explain why you chose it.

1. Financial security

2. Predictable outcome.

3. In demand.

4. Little or no volatility

5. Ease of purchase and sale.

6. Undervalued.

Explanation:

1. Financial security:

A good investment should be financially secure or safe from market crashes, change in government policy, etc. It should be an investment fail-safe that you can rely on to keep your investment funds secure.

2. Predictable outcome: Another characteristic of a good investment plan when devising a savings plan is predictability to a large extent. Before investing, there should be adequate enquiries and analysis of past trends and future prospects to enable an investor make better judgement.

3. In demand: Whatever investment that a person ventures into should be in popular demand by others so proper market predictions as to rise or fall of the commodity can be more accurately done.

4. Little or no volatility: À good investment shouldn't be volatile and unpredictable as this could cause major loss that can't be easily predicted.

5. Ease of purchase and sale: À good investment plan for savings must be easy to purchase or sell. This is necessary to avoid a situation where the investor plans to sell but doesn't find a buyer or wants to buy and doesn't find a seller.

6. Undervalued: À good investment plan for savings is advisable to be entered or bought when the good or service is undervalued, I. e, sold below its potential value so as to maximise profit at later dates.