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.

Investment basics miniseries

More articles from our New To Investing mini-series

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...
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...
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...
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.
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.
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.
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.
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.