"An investment in knowledge pays the best interest." - Benjamin Franklin

Investing involves committing money or capital to an endeavor with the expectation of obtaining additional income or profit. It's a crucial aspect of financial planning that allows one's money to grow over time. Whether it's stocks, bonds, real estate, or start-ups, understanding the basics of investing can lead to enhanced financial security and wealth creation.


Key Concepts:

  1. Risk vs. Return:
  2. Diversification:
  3. Compound Interest:

Types of Investments:

  1. Stocks: Ownership shares in a company. Investors earn returns through dividends and capital appreciation.
  2. Bonds: A loan made to an organization (often governments or companies). They pay periodic interest and return the principal at maturity.
  3. Mutual Funds: Investment vehicles pooling together money from many investors to purchase a diversified portfolio of stocks, bonds, or other assets.
  4. Real Estate: Physical property investment, such as houses or commercial properties.
  5. ETFs (Exchange-Traded Funds): Similar to mutual funds but trade on stock exchanges much like individual stocks.

Basic Investment Strategies:

  1. Buy and Hold: Purchasing investments and holding them for a long period, irrespective of market volatility.
  2. Dollar-Cost Averaging: Investing a fixed amount of money at regular intervals, irrespective of the asset's price.
  3. Asset Allocation: Distributing investments among different categories like stocks, bonds, and cash.