Understanding Investing

Overview

This lesson introduces the foundational concepts that demystify the investment landscape for beginners. It explains the different types of investment products—such as stocks, bonds, mutual funds, and ETFs—and how they function in financial markets. You will learn about the balance between risk and return, the importance of diversification, and the role of time horizon in shaping investment choices. By focusing on simple, practical strategies like investing in broad market index funds and controlling costs, equipping learners with the essential knowledge to start investing confidently and make informed decisions aligned with their financial goals.

Learning Outcomes

• Describe the main types of investment products and their roles in a portfolio.

• Explain the relationship between risk, return, and time horizon in investing.

• Understand the importance of diversification and cost management in building an investment strategy.

• Apply basic principles to select suitable investment options for different financial goals.