Finance

Learn some financial terms

Summary

Managed funds Managed funds or mutual funds because they are also called a very good way for ordinary people to get involved in Sharemarket. When you invest your money into certain funds, you combine your money with other investors who […]

Managed funds

Managed funds or mutual funds because they are also called a very good way for ordinary people to get involved in Sharemarket. When you invest your money into certain funds, you combine your money with other investors who will not be able to invest directly in Sharemarket. There is a fee with this fund that pays the fund manager service.

Diversification

This is when you spread your money to minimize the risk rather than putting too many eggs on a few baskets. During 2008 GFC there were stories of investors who lost all their life savings when a financial company went down. These people invested all their money in one company instead of spreading their money around assets and different types of investment known as diversification.

Cheerfulness

Volatility refers to the upper and lower market movement; This also applies to investing in gold and crypto currencies …

Experienced investors know that the market can be volatile during the period of uncertainty. Investors need to develop the correct mindset during these times because the market will take the smartest investor on a roller coaster trip.

Risk profile

This is related to how much the risk you want to receive before you start nervous with your investment. It is very easy to become an investor in growth funds when the market rises but as it is known experienced investors, Volatile Sharemarket, therefore you must invest according to the number of volatility that you can tolerate.

Average

The average is a strategy in which you buy a small group of shares regularly in shape in one lump sum. This is possible with internet trading applications. The advantage is with the value of shares up and down at least you have bought several shares at a lower price. Find the average number you pay for that part, add the total amount paid for the part and divide the number with the total number of transactions. This will give you an average amount per share. On average it can also be used in Bitcoin purchases.

Dividend

Dividends are paid by the company to shareholders. Dividends come out of profit by the company. Many investors like to reinvest the money they receive from dividends; others prefer to accept it as income. It all depends on whether someone invests for long-term income or capital.

Asset

Assets are something that generates income for you. Examples of assets are account bearing accounts, stocks, reciprocal funds, property, etc.

Obligation.

Responsibility is something that weighs on your money. If you pay something it is an obligation. Items purchased on HP, credit cards, or financing companies are all obligations because they spend money. The money manager cleverly has a little obligation because they know that flowers paid on loan money is “dead money” because they don’t accept anything real for their money.

Capital-gains.

Captain-Gains is an increase in investment value whether it is shares, reciprocal funds, property, gold, or crypto-currency.