Page 2 - PMD Financial Advisers_An introduction to investing
P. 2
Contents
Introduction 3
Understanding risk 4
Types of risk 5
Avoiding risk 5
Investment concepts 6
Compound interest 6 Dollar cost averaging 8 Borrowing to invest 9 Time in – not timing 10
11 Returns on investments 12 Asset classes 13 Types of asset classes 13 Asset class returns 17 Asset allocation 17 Managed funds 18 Advantages of managed funds 18 Types of managed funds 18 Other types of funds 18 Master trusts, wraps and platforms 19 Master Trusts 19 Wraps 19 Platforms 19 Fees 19 Superannuation 20 Types of workplace super funds 21 Other types of super funds 21 Types of contributions 21 23 Transition to retirement 23 Investment bonds 24
Investments are not 'set and forget' 25 The true value of advice 26
2
