Asset allocation is often hailed as the cornerstone of long-term investing. It involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash.
Understanding business cycles helps investors make informed decisions. Learn how different phases—recovery, expansion, slowdown, and contraction—affect bond and equity fund performance, and how to position portfolios to manage risk and seize opportunities.
Public markets offer liquid, transparent investments like stocks and bonds, while private markets include more niche assets such as private equity and real estate. Even with fundamental differences, like in liquidity and regulations, both types of assets can be instrumental in building a robust portfolio.
When building a portfolio, investors have many different options. A key decision is choosing between active and passive investing approach — each with unique benefits and risks. Understanding the difference is essential for making informed investment decisions.
Investing involves risks, and emotional decisions can lead to mistakes. Common pitfalls include reacting to short-term market volatility, trying to time the market, and investing based on rumors. Rational decision-making and long-term strategies are important to achieving investment goals.
Income investing seeks primarily to generate a regular stream of payments. Ideally, this income stream should outpace inflation. Along with regular income, this strategy also seeks capital appreciation, which is key to long-term wealth creation.
We often come across financial news headlines using terms like “GDP”, “inflation”, and “interest rates”. What do these terms mean and how do they affect investments like stocks and bonds?
There are many ways that we can accumulate our money and grow our wealth. One of the simplest ways is to hold cash. Especially in times of uncertainty, it’s easy to fall back on the old saying “cash is king”.
