Investing is not just about what you know but also who you are. Whether a seasoned investor or just starting out, why not get to know yourself a little better?
Investing your hard-earned money is not easy, but it is often the best way to help you achieve your financial goals and life plans. But how do you know if the financial advice you receive is accurate? Have you considered the long term effects of inflation on your savings? Do you know the reason why diversification is important when you invest?
In the following pages we will guide you through the basics of investment so that you too can become a smarter investor and have a better understanding of your financial advisor's recommendations.
Enjoy the module!
Whether you are investing for retirement or simply trying to grow your money, it is important to work towards a specific goal and to monitor your progress regularly.
It is important to understand that investing in equities involves risk, particularly over the short-term. But if you are prepared to be patient and focus on the long-term, equities offer the potential for relatively higher returns. Investors with a low tolerance for risk and a short investment horizon should generally avoid equities.
The price of goods and services increases over time and each Rupiah in your pocket buys less and less each year - that is inflation!
Experts often talk about the importance of diversification, but what does it mean? It simply means 'Do not put all your eggs in one basket'.
Allocating assets is closely related to diversification. It is possible to reduce risk by both diversifying within asset classes and between asset classes.
The stock market may appear an uncertain place to put your money. Markets move continually as they react to economic news and to supply and demand for shares. Daily movements in the stock market can be sudden and sharp but investors should be prepared for such volatility.
A regular savings plan is a great habit to get into and even a small sum invested each month can soon grow into a useful amount.
The stock market can be a great place to invest over the long term but sticking to your investment plan during the tough times can be difficult.
Find out more various terms in investment
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