Investing is the process of putting money into something The Investors Centre has the potential to grow in value over time. The most common investments include stocks, mutual funds and exchange-traded funds (ETFs), but you can also invest in tangible assets like real estate, art or collectibles. Investing is not a one-size-fits-all activity, and you may want to consider how much risk you can handle and what investment goals you have before making any decisions.
Historically, investments have provided higher returns than insured savings products, particularly over long periods of time, such as years or even decades.* However, all investments carry some level of risk, and the value of investments can go down as well as up.
How to Start Investing with Little Money
The investment field has a long history, with contributions from many of the giants in economics, including irving fisher, arthur cecil pigou, alfred marshall and john maynard keynes. The neoclassical theory of investment is the basis for much modern economic analysis.
Before investing, make sure you have an emergency fund in place that can cover three to six months of living expenses and you’ve paid down high-interest debt. You should also be familiar with how taxes affect your investment returns, including income, capital gains and other fees.
Once you know what kind of investor you are and what your goals are, you can decide whether to do it yourself or hire a professional. Either way, it’s important to be educated about the basics of investing so you can make informed choices and avoid hunches or hot tips that could end up costing you money.