7. ICFO Investing-Financial

7. ICFO Investing-Financial Investment Strategies Diversification: Spread your investments across different asset classes (stocks, bonds, real estate, etc.) to reduce risk. Long-Term Approach: Focus on long-term gains rather than short-term profits to benefit from compounding returns. Risk Tolerance: Understand your risk tolerance and invest accordingly. Higher risk can lead to higher returns but also more significant potential losses. Types of Investments Stocks: Represent ownership in a company. It can provide high returns but come with higher volatility. Bonds: Debt instruments issued by corporations or governments. Generally safer than stocks but offer lower returns. Mutual Funds/ETFs: Pools of money from multiple investors to invest in a diversified portfolio of stocks/bonds. Real Estate: Property investment can provide steady rental income and potential appreciation over time. Cryptocurrencies: Digital or virtual currencies that use cryptography. Highly volatile and speculative. Financial Planning Emergency Fund:\ Set aside 3-6 months’ expenses in a liquid savings account. Educate, Study, and Learn B4 Invest Only What You Are Comfortable Losing