Diversification
No matter how trite this saying is, it still applies to you: Don't put all your eggs in one basket.
Diversify your portfolio to ensure that funds are distributed among
several different investments or instruments in order to spread out the
risk. The more diversified a portfolio is, the less vulnerable the
investor will be to the poor performance of a single investment.
Risk and Return
Risk refers to the uncertainty of the outcome of an investment.
Typically, the higher the potential return of an investment, the less
predictable is the return. In short, higher returns are accompanied by
higher risks. It is therefore important for an investor to match his
risk appetite with his chosen investment.
Long-term vs. Short-term investing (Investment Horizon)
Before making an investment, an investor should first assess for how
long he intends to hold on to the investment. Generally, holding an
investment over a long period of time works in favor of the investor
because risk and uncertainty tend to reduce over time. If one prefers to
invest only in the short run, he should place his funds in less risky
and highly liquid investment products such as time deposits, treasury
bills, and money market funds, among others. But if the investor is
willing to accept a certain degree of risk and wish to invest for a long
period of time, he may feel comfortable investing in relatively high
yield but also high risk products such as equity mutual funds, Unit
Investment Trust Funds (UITF), forex trading pool, etc.
Source: http://www.pinoymoneytalk.com/basic-investing-concepts/
Risk and Return
Long-term vs. Short-term investing (Investment Horizon)
Source: http://www.pinoymoneytalk.com/basic-investing-concepts/
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