Investment Basics
Investing money for the first time can be daunting. Whilst it’s important to seek professional advice before investing, it’s also good to understand the investment basics, so you can get started with confidence.
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When should I start investing?
It’s never too early to start investing money. In fact the earlier you start investing, the more time you have in the market to increase your chances of higher returns on your investments.
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What types of goals do I need for investment setting?
Setting your investment goals is probably the most enjoyable part of investing. It’s your chance to set out where you want to be and how you want to get there. The simplest way to set your investment goals is to look at them within a particular timeframe: short, medium or long-term.
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What is a diversified investment?
Very simply, to diversify means not putting all your eggs in one basket. If you invest in a range of assets, creating diversified investments, your overall risk may be less than if you invested in one asset alone. If you invest in one asset only you will bear the brunt of any loss in value of that asset.
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Where to invest: What are the investment asset classes?
Asset classes include shares, property, government bonds and cash.
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What are the investment traps?
Many investors continually fall into the same investment traps. In looking at how to invest, a good starting point is to look at the pitfalls and make sure you avoid them.
Did you know?
The rise and fall of a share price is complex. However, share prices are generally affected by two things, company performance and wider economic conditions.
Investing can help you reach your financial goals – so find out how to start investing.
