Welcome to the first lesson of your journey towards becoming a confident investor! In this introductory module, we’ll establish two fundamental pillars for your investment success: understanding the role of ETFs and identifying your risk appetite.
Think of ETFs as pre-built investment portfolios that hold a basket of various securities, like stocks, bonds, or commodities. By owning an ETF, you gain instant diversification across different sectors and industries, spreading your risk and potentially reducing volatility in your portfolio. This can be crucial in protecting your investments from unexpected market fluctuations.
Understanding your Risk Appetite
Not all investors are created equal. Some individuals are comfortable with taking on more risk in exchange for the potential for higher returns, while others prioritize stability and security. Identifying your risk appetite is crucial for making informed investment decisions and choosing the right strategies for your unique financial goals and circumstances.
In this first lesson, we’ll delve deeper into:
By laying this foundation, you’ll be well-equipped to make informed decisions as you embark on your investment journey. Remember, successful investing is a marathon, not a sprint. This first lesson is your crucial first step!
Once you finish watching the lesson, please complete the following Risk Assessment Quiz before proceeding to Lesson 2. In Lesson 2, I will reveal how to construct your own portfolio using ETFs based on your risk appetite.