Investment Fundamentals

1
Investment Fundamentals

• Chapter 13

2
Investing Is More Than Saving

• Saving is the accumulation of excess funds.
• Investing is wealth creation.
• Investment assets are in the form of securities.
• Investment portfolio consist of shares, bonds,
  and money market instruments.

3
When to Invest?

• Having no extra money at the end of the month.
• Being able to save regularly.
• Using credit wisely.
• Having insurance.

4
Reasons to Invest

• To increase current income.
• To meet retirement needs.
• To gain wealth.
• To achieve financial goals.

5
Sources of Funds to Invest

• Regular earnings.
• Extra funds.
• Employer pension plan
• Reduced expenses.

6
Types of Investment Returns

• Dividend gain.
• Capital gain.
• Rent.