investment criteria

Investment criteria are the standards used to assess the potential of an investment opportunity. Key factors typically include expected return on investment (ROI), risk level, time horizon, market conditions, and alignment with financial goals. Investors also consider the asset's liquidity (how easily it can be sold), diversification (spreading investments to reduce risk), and economic trends. By evaluating these criteria, investors can make informed decisions, aiming to maximize returns while managing risks effectively. Ultimately, it’s about balancing potential rewards against possible downsides to achieve their financial objectives.