Module 1 of 12 · 20 min
The investment landscape
Goals, risk and the main asset classes, before mutual funds. Everything here is free. Work through the lessons in order, or jump to the one you need.
5 lessons in this module
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What you will cover
- 1 Why we invest Why money left idle quietly loses value, and how a goal and its time frame decide where the money should go.
- 2 The main asset classes Equity, debt, real estate, gold and cash, what each one is, how it earns, how much it swings, and how easily you can get your money back.
- 3 The types of investment risktrickiest The distinct risks an investment can carry, inflation, interest rate, credit, liquidity, market, currency, concentration and reinvestment, and how each one actually bites.
- 4 Biases that cost investors moneytrickiest The mental shortcuts, loss aversion, herding, overconfidence, anchoring and more, that push investors into buying high and selling low, and how to spot them.
- 5 Risk profiling and asset allocationtrickiest How an investor's need, capacity and tolerance for risk shape a mix of assets, and why rebalancing on a schedule quietly makes you buy low and sell high.
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