A good way to invest in commercial property is buying an investment trust where a manager selects a number of properties to invest in. Precious metals Here’s why investors LOVE ETFs: They trade in real-time while the market is open and they usually have lower management fees. These two human conditions are indeed analyzable, but they will never, and I repeat never, be translated in perfect mathematical laws.

Another mutual fund option is target retirement date funds. If you wan This is where managers buy and sell a pool of investments on your behalf to try to outperform a particular market.So said a certain Albert Einstein, what we all know to be the scientist by definition. Don’t be scared though, it’s not about mathematical concepts or theorems, impossible to understand for normal human beings like us. It’s really not. Indeed, perhaps is one of few cases where school math becomes useful and interesting. Compound Interest definition for dummies In other words, when you invest in a fund you become part of a group of people who have collected together their money, which it’s then delivered to a expert investor to handle it. Private equity fund: Private equity funds are pooled investment vehicles similar to mutual and hedge funds. A private equity firm, known as the "adviser," pools money invested in the fund by multiple investors and then makes investments on behalf of the fund. Private equity funds often take a controlling interest in an operating company and engage in active management of the company in an effort to bolster its value. Other private equity fund strategies include targeting fast-growing companies or startups. Like a hedge fund, private equity firms tend to focus on long-term investment opportunities of 10 years or more. Vice versa, for those who prefer a more aggressive portfolio, with higher risks but also higher revenue prospects, at least 2/3 of the capital will be allocated to equities, and the remaining on bonds and funds.

The investment portfolio is a set of financial assets appropriately combined to achieve a goal. Said simply, your portfolio is the set of all financial products and strategies on which you decided to invest. Benefits of a diversified investment portfolio Now you’ve finally clear the sense of this lesson. Work and pay yourself first each month allows you to do three things. A dividend is like a small reward that companies pay out from their own profits to incentivise shareholders to continue holding an investment with them. When we think about the different investment instruments and the investment practice in general, one of the factor that very often discourages most people is undoubtedly time. Nowadays we are so used to the concept of “all at once” that we have lost the precious value of time.You will then learn how Social Trading works. It’s an innovative form of investment based on Forex, which will allow you to invest today without necessarily becoming an expert in this market. Keeping informed every day about your portfolio, the financial markets, and the general economy will keep you from the fear and anxiety that come from the unknown and the surprises that are inevitable. Now, let’s say you get an average monthly return of 5%. Leaving them on the account, at some point you’ll be able to increase the weight of the operations that will be replicated, because your capital, increased due to interest, will allow a greater “firepower”. Let’s start by making a clarification: when you invest there are no enemies, there are no good nor bad ones. When you invest, there are the goal you want to achieve, and the related risks. So, we can start by changing the Sun Tzu sentence in “If you know your goals and know yourself, even in a hundred investment you will NOT be in danger.” First investment goal: being master of your own money To conclude, there is only a risk when it comes to building an investment portfolio and diversifying, and it’s to exaggerate. As with all things, you need the right balance. Warren Buffet said that

Any promise of being profitable with little or no effort should at least keeps your ears peeled, because statistics show that around 90% of those who try these difficult instrument by their own, without the necessary studies, miserably fail. – SOCIAL TRADING One should take into account factors such as competing firms present within the industry sector along with any emerging trends which may affect potential risks of invested funds. You could also invest smaller amounts in other asset types, such as precious metals like gold and silver. You don’t have to be super wealthy to invest. Find out how to invest with little money here. Lump sum or regular savings? Having well understood what are the basics of the art of investing is the first step to begin the journey in the right direction. Besides avoiding bad surprises, you will benefit from significant time savings in achieving your objective. Those who begin without basis, in fact, wastes a lot of time in the beginning making the first attempts, and probably losing a lot of money.I cover most of these basics in the Foundation investing course, however, I encourage you to research further afield to satisfy your curiosity about these topics.

Do your homework before you invest. You work hard for your money, and buying and selling investments costs you money. Investing isn’t a field where acting first and asking questions later works well. Never buy an investment based on an advertisement or a salesperson’s solicitation of you. Now, we have the two main instruments, human labor and money, ready to let us gain other money. In the next lesson we will look at the third and last component, ie the concept of compound interest. The power of Compound Interest

The first: to buy a good, and then wait for this to raise in value over time, so to be able to resell at a higher value and cash the profit. The principles of diversification and why diversification is an essential element of an investment portfolio. Aside from the varied world of scams and companies that implement them (the most popular recently was the Madoff’s one), once a person entrusts his money to another, he inevitably loses control over it.