ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investment philosophy
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investment
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investment risk
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bond
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Detailed explanation-1: -An investment philosophy is a set of beliefs and principles that guide an investor’s decision-making process. It is not a narrow set of rules or laws, but more a set of guidelines and strategies that take into account one’s goals, risk tolerance, time horizon, and expectations.
Detailed explanation-2: -Risks Drive Expected Returns. We believe that risk drives expected returns. What this means is that distinct asset classes have distinct risk-return profiles; that is, investors are rewarded for the risks that they are willing to assume.
Detailed explanation-3: -The main types of market risk are equity risk, interest rate risk and currency risk.
Detailed explanation-4: -Following the four simple principles – goals, balance, cost and discipline – and focusing on the things you can control will help you become a better investor and ultimately deliver you the best chance for investment success.