Do you want to start
INVESTING?
Well, in that case let me show you first WHAT IS INVESTING
What is investment?
What Is Investment? Investment involves putting money to work for a specific period in a project or undertaking with the expectation of generating positive returns. These returns can take the form of profits that exceed the initial investment. Investors allocate resources, typically capital (i.e., money), to various endeavors. For instance, they might start a business, invest in real estate to earn rental income, or buy assets with the intention of selling them later at a higher price. Unlike speculation, which focuses on short-term price fluctuations, investing usually spans months or years to achieve acceptable returns.
Some tips before investing
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Risk and Return: The Core Premise The fundamental premise of investing is the expectation of a positive return—either through income (such as dividends or interest) or price appreciation. Risk and return are intertwined: lower-risk investments tend to yield lower expected returns, while higher returns often come with higher risk. Here’s a spectrum of investment options:
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Low Risk: Basic investments like Certificates of Deposit (CDs).
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Moderate Risk: Bonds or fixed-income instruments.
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Higher Risk: Stocks (equities).
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Riskiest: Commodities and derivatives. Additionally, practical investments include real estate, land, fine art, and antiques. Within each asset class, risk and return expectations can vary significantly.
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Getting Started with Investing To begin investing, consider the following steps:​
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Set Goals: Define your investment objectives—whether it’s wealth accumulation, retirement planning, or funding a specific goal.
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Diversify: Spread your investments across various assets to manage risk.
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Choose a Strategy: Decide whether you’ll be a DIY investor or seek professional advice.
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