How You Can Use SWOT Analysis for Financial Investments | MoneyMindz

By | 18/06/2018
SWOT Analysis for Financial Investments | MoneyMindz

MoneyMindz – India’s First Free Online/On-call Financial Advisory Portal

You would have heard about SMART analysis, Specific, Measurable, Attainable, Realistic, and Time-boundChances are that you have also heard about SWOT analysis, Strengths, Weaknesses, Opportunities, and Threats[Get Personalised Advice For SMART and SWOT –Visit]

How to use SWOT Analysis For Financial Investments?

You make several choices every day but how many of them benefit you while the others hurt you? Tune in to find out.

Make a table and write down like this. The first two are internal forces while the last two are external forces.

Strengths Weaknesses
Opportunities Threats

Once you have made a table like this, access yourself. Ask yourself what your SWOT are. Find out the company or mutual fund where you want to invest and probe into their SWOT.

When you ask yourself about the internal forces, you have to include questions about your budget, income, expenditure, savings, financial objectives and investment plans, etc. Not only should you include your own feedback and answers to these questions but also include what others opine about the same questions. For instance, you might think buying a fancy hat to keep up with the Jones is a good idea but Mr Jones would himself disagree saying that he required that hat because he went on a vacation to Hawaii.

You May Like This Also  Save Income Tax for Salaried Professionals for Financial Year 2018-19

When you ask yourself about the external forces, you have to include questions like how stable or risky your job is, what are your costs of living and expenses, how is the economy expected to perform shortly, how will the change in the economy affect your investment(investment planning) and earnings, etc. Again, it’s equally crucial to know what others opine about this too. You may think the economy is doing just fine but your parents might suspect inflation in the next few weeks.

The next step is to revisit your lists of SWOT analysis and verify them. You might be able to list some specifics apart from generics. This will help you ask questions like “How will I take advantage of a negative situation and turn it into positive?”

Make a plan. How will you clear your debt funds? By when will you clear it? When, where and how will you invest? These are fundamental questions you need to ask yourself.

Decide how you will fight your weaknesses and threats. Keep in mind your strengths and opportunities to remind yourself to be confident when you feel down. You need to create an action plan.

Does the company or fund house you want to invest in, give capital appreciation and high rates of return? What are its long-term capital gains and are they tax-free? These are some questions to which you need answers to.

If you’re confused, visit or give a missed call to 022-62116588

One thought on “How You Can Use SWOT Analysis for Financial Investments | MoneyMindz

  1. Pingback: Some Concise Investment Options | Financial Adviser | MoneyMindz

Leave a Reply