How_Money_Works_-_The_Facts_Visually_Explained

182 183 PERSONAL FINANCE Wealth-building investments WHY SHARE PRIC E S MAT TE R ❯❯Investors focusing on capital growth will onl ...

SHARES Managed funds How it works Managed funds offer a simple way for investors to access a variety of investment markets. As w ...

184 185 PERSONAL FINANCE Wealth-building investments Investors can make a profit by selling units for a higher price (known as t ...

Managing investments Investments are something individuals buy or put money into in order to make a profit, or “return”. There a ...

186 187 PERSONAL FINANCE Managing investments $ Managing investments “The most important thing about an investment philosophy is ...

Asset allocation and diversification To reduce the risk of their investment, investors often try to diversify their portfolio, s ...

188 189 PERSONAL FINANCE Managing investments How it works Asset classes are different categories of investment. Investors diver ...

How it works Catching the bottom of the market to get the best unit price is very difficult, and even the experts get it wrong s ...

190 191 PERSONAL FINANCE Managing investments May June July MONTH INVESTOR B US$200 dollars buys 10 shares Investor A US$1,400 b ...

Investor types Fund managers and financial advisers often provide risk-profile questionnaires to individual investors to help th ...

192 193 PERSONAL FINANCE Managing investments Balance Investors who are happy to invest in more shares and property are likely t ...

The optimal portfolio A portfolio consists of a selection of different assets. The optimal portfolio achieves the ideal trade-of ...

194 195 PERSONAL FINANCE Managing investments ❯❯Weighting The percentage of a portfolio consisting of particular assets. Calcula ...

Pensions and retirement A pension scheme is a type of savings plan to help save money for retirement. Pensions enable workers to ...

196 197 PERSONAL FINANCE Pensions and retirement Pension pays out income Employees and employers make monthly payments into a fu ...

Saving and investing for a pension How it works Some countries pay retirees a state pension based on taxpayers’ contributions. H ...

198 199 PERSONAL FINANCE Pensions and retirement PENSION CONTRIBUTIONS Calculations by a British consumer association reveal tha ...

SAVING AND INVESTING FOR A PENSION Defined benefit vs defined contribution Company pension schemes that promise a fixed monthly ...

200 201 PERSONAL FINANCE Pensions and retirement Pension fund management Poor decisions by the pension fund managers can lead t ...

Cash lump sum How it works There are two main options for turning pension savings into income. The first involves buying an insu ...