Do you just save money or invest it as well? If you’re only saving, then chances are you’re quietly losing money. In most normal economies, inflation raises the price of goods and services each year. This means that the buying power of $1 today, is higher than we expect it to be in 5 or 10 years.
As a rough example, if your saving account is paying 1% interest, but inflation is growing at 3%, then you are effectively losing 2% each year. For this reason, money-minded people invest a portion of their money to keep up with and hopefully beat the effect of inflation.
On this episode, we cover some key concepts you need to understand for investing in funds rather than buying individual stocks.
On the inside:
- Expense ratio
- Dividend Yield
- Market segmentation
- Liquidity and redemption
- Lockup periods and more.
Essential financial education for ambitious young professionals.
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In today’s episode, we...
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