Getting started

The investment strategy you choose will determine which assets you choose to invest in and the timeframe of the investment.

A mutual fund is a group investment managed by a professional fund manager.

Different kinds of investments generate money in different ways. Underlining every investment decision should be the calculated assumption that the asset invested in will become more valuable over time. In other words, it should appreciate in value. 

The value of an item or service is determined by how many people want to sell this item or service and how many people are interested in buying what’s being sold. Supply and demand, in other words. The availability of that being sold also has an impact on its value. 

Dividends are paid to a company’s shareholders as a reward for investing in the company.

Net worth is an estimate of financial health. It’s how much a person or company has left when all costs are subtracted.

A ledger is a record of transactions, historically in the form of a large book for merchants to log their purchases and sales.

The yield is the total value (net) earned by the investment after a period of time.

A hedge fund draws funds from professional and institutional investors to make a profit.

A long-term investment is an investment that is typically held for longer than ten years.

A short-term investment strategy typically concludes within five years and includes cash, short-term bonds and equities.

By buying company stock you essentially own a fraction of the company.