The big idea
📈
Put your money to work
Investing means buying assets you expect to grow in value or pay you income over time.
Finance · Lesson 6
Investing Fundamentals
beginner⏱ 13 min · 7 cards
The menu
Common assets
Tap each.
Key idea
Flip to learn
Why diversify?
tap to reveal ↻
Diversification
Spreading money across many assets so one loss cannot sink you.
Nuance
Take it with you
Maester Note
Time in the market usually beats timing the market.
Recap
Key takeaways
- ✓Stocks are ownership; bonds are lending; funds pool both; property and cash serve different roles.
- ✓Higher expected return generally comes with greater volatility.
- ✓Diversification protects against the specific disaster, not the general downturn.
- ✓Time horizon determines how much volatility is tolerable.
- ✓Fees compound against you exactly as returns compound for you.
Quick check
Which best describes what finance is about?
You did it
Nice work
Mark this lesson complete to track your progress.