Investment Concepts: Investment Concepts Alan Teh (06 July 2011) sgPlan Production Basic Investment Concepts: Basic Investment Concepts In today’s lesson, we will be learning some basic investment concepts that will generally help you if you are planning for a long term goal. sgPlan Production Basic Investment Concepts: Basic Investment Concepts Investing is a very good way to do with your money if you have a long term goal and you wanted to grow your money. sgPlan Production Basic Investment Concepts: Basic Investment Concepts sgPlan Production Rule Number 1 Time Horizon Time Horizon: Time Horizon sgPlan Production Invest $100,000 in Jan 1991 Worth about $250,000 in Dec 2010 Drop of about 60% Asian Financial Crisis – Drop of about 50% Dot Com Bubble Burst Today (Video is created in July 2011 Basic Investment Concepts: Basic Investment Concepts sgPlan Production Rule Number 2 Diversify Diversify: Diversify sgPlan Production Vanguard Bond Market went from 63 to 78 Invest $50,000 in STI & $50,000 in Vanguard Bond in Oct 07 Value of STI in Dec 2010 = $43,000 Value of Vanguard Bond Market in Dec 2010 = $59,000 Total Value = $43,000 + $59,000 = $102,000 Invest $100,000 in STI in Oct 2007 Value will be $86,000 in Dec 2010. Diversify: Diversify sgPlan Production Diversify into different Assets like Bonds, Stocks and Cash. This will help to give you liquidity in different market scenario. Market Emotions: Market Emotions sgPlan Production Rule Number 3 Market Emotions Market Emotions: Market Emotions sgPlan Production Market Emotions: Market Emotions sgPlan Production Rule Number 3 Market Emotions Control Your Emotions Basic Investment Concepts: Basic Investment Concepts sgPlan Production Rule Number 3 Control your emotion. This is the most important Rule. Do not let emotions control your investing decision. Keep to you long term goals. Basic Investment Concepts: Basic Investment Concepts sgPlan Production Rule Number 1 The longer your time horizon, generally, the lower your risk will be. Rule Number 2 Diversify into different asset classes like bonds, stocks and cash will give you flexibility in different market scenarios. Rule Number 3 Control your own emotion. Do not let short term market fluctuations affects your long term investment goals. Presentation Disclaimer: Presentation Disclaimer sgPlan Production Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the author individually and, are not to persuade anyone into investing their money with the examples shown. Alan Teh does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. Viewers should note that videos are created and own by sgPlan and Alan Teh and may not be published in various media, including print, audio and video formats without permission from the creator.