What Is Investment Decision?

Investments decisions are the very important decisions for any company and they are made by the investors and the investment managers. Investments decisions are used to perform the investment analysis and then by using some fundamental analysis, the best decision is selected from various alternatives. There are various decision making tools which are used to support the investment decisions.

In the investment decisions the companies carry out the risk and return analysis and come up with the decision where they can minimize their risks and increase their returns. Some investment decisions promise high rate of returns for very risky investments and abnormal profits can be earned on such investments.

Therefore, the investors have to come up with various analysis to make an investment decision. The investors who are risk averse do not go for risky investment decisions for the sake of high returns but the investors who are risk takers always prefer risky investment decisions.

A determination made by directors and/or management as to how, when, where and how much capital will be spent on investment opportunities. The decision often follows research to determine costs and returns for each option.