The Basics of Investing

Smart investors don’t rely on good luck, they plan, research and understand their investment strategies and how they fit with their financial goals. If you’re planning to invest, it’s important to have a clear understanding of your financial goals, and how your investment strategy will help make these goals become a reality.


The first step is to determine what you want to accomplish with your money and when you want to achieve it. You also need to consider your appetite for risk. Investments that carry more risk are generally suited to a long-term investment horizon as they can be susceptible to periods of volatility over the short term. On the other hand, low-risk investments could make reaching your goals harder as they typically offer lower returns.

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