Investment basics
Navigating the world of investing can be difficult. Markets are often unpredictable and the future is uncertain. That’s why understanding and following some key investment principles is essential for investors. Whether it’s recognising the importance of staying invested for the long term, managing market driven emotions, or simply getting started in investing, there’s something relevant for every investment goal.
In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.
Investment basics miniseries
Every one of us will have different financial circumstances to consider. From the importance of setting investment goals, to understanding the different asset classes, we discuss everything you need to consider when starting your investment journey.
Volatility is a natural part of investing and is used to describe periods of unpredictable market rises and falls. Understandably, during periods of volatility some investors can become concerned.
More articles from our New To Investing mini-series
Investment Goals
Setting financial goals for investors allows them to focus on decisions that will contribute to their overall objectives, rather than monitoring the outcomes for a range of individual investments...
Asset classes explained
Groupings of investments that have similar financial characteristics, each asset class carries its own set of risks and rewards. Investors’ investment goals, like their personal circumstances...
Understanding risk
For investors, risk represents the chance that a particular outcome or financial gain differs from its expected return, however, it’s important to recognise that risk is an inherent part of investing...
What is a fund
A fund is a type of investment that enables multiple investors to collectively purchase securities, whilst retaining ownership and control of their shares. Similar to a listed company, a fund is owned collectively by its shareholders, with an investment objective and policy dictating what the fund manager purchases.
The importance of diversification
From year to year, it is difficult to predict which asset classes will be the best performers. Most investment specialists agree about the benefits of spreading your money across different investments. This diversification can reduce volatility, smooth out highs and lows in returns and help avoid unnecessary risk.
Why invest globally?
Only investing locally means missing out on opportunities offered by global markets. Better diversification, more investment options and reduced volatility are among some of the reasons investors should consider investing globally.
Savings vs multi-asset
Both savings accounts and multi asset funds can offer benefits for investors. Over the long term, investing and saving can complement one another and potentially help towards achieving financial goals.
Why multi-manager investing?
Instead of focusing on just one type of investment, multi-manager funds invest in lots of other single-focus funds. This can allow investors to choose a single fund that diversifies investments and combines the talents of many fund managers all in one.