This course serves as an introduction to the financial system. The financial system has six elements: lenders & borrowers, financial intermediaries, financial instruments, financial markets, money creation and price discovery. It describes the non-financial surplus and deficit economic units (ie lenders and borrowers), and direct (between ultimate lenders and borrowers) and indirect (via the diverse financial intermediaries) financing.
What will set you apart
On completion of this course, you’ll walk away with:
* The confidence to intelligently manage an investment portfolio alongside a financial advisor
* The ability to estimate returns on equity investments and investigate offshore financial investments
* Knowledge of key investment philosophies and constraints, and an understanding of the fundamental principles of pooled investing
* The ability to distinguish between alternative asset classes, financial markets and products, as well as the understanding to make informed investment decisions
Is this course for you?
This course is ideal for anyone interested in investing, but who has no formal knowledge or qualification of the subject. It will also benefit professionals who have a background in finance, but little exposure to investing specifically.
These professionals will gain a greater understanding of investment products, including offshore investments, and asset classes such as cryptocurrencies. Through the course, students will become equipped to consider investments from a global perspective, while working towards their own financial reward.
An introduction to investing
You understand that investing is smart and that a lot of people have made a lot of money doing it. The problem is, you never took an investing for beginners class, you’re scared to lose all of your money, and you don’t want to do the work. The good news is, we’re about to tell you that all of your concerns are.
The effects of the economy
Inflation is an economic term describing the sustained increase in prices of goods and services within a period. To some, inflation signifies a struggling economy, whereas others see it as a sign of a prospering economy. Here, we examine some of the residual effects of inflation.
Interest bearing investments
The term "fixed interest investment" covers a broad range of investment options, ranging from the local bank’s term deposits through to government and company bonds. They are investments, which are for a fixed period of time in which you lend the institution funds and they agree to pay back that sum (the principal) at the end of the term (the maturity date), as well as agreeing to pay you interest at regular intervals. This type of investment allows you to choose the amount you wish to invest and the length of time you wish to commit your money to. They are ideal for people who want to lock into a set interest rate for a fixed term and who wish to have a guaranteed income flow. The can provide a certain amount of protection from falling interest rates, but on the other hand they can restrict you should interest rates increase. In general, the rate of return from bank term deposits is much less than those offered by debenture stocks, etc. In the long-term, however, fixed interest investments should provide returns, which are higher than cash, but not quite as high as other investments, such as shares or property. If you want to minimise your risk then look for the safety of interest bearing investments.
Other asset classes and investments
An asset class is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset classes are made up of instruments which often behave similarly to one another in the marketplace.
Pooled funds are funds in a portfolio from many individual investors that are aggregated for the purposes of investment. Mutual funds, hedge funds, exchange traded funds, pension funds, and unit investment trusts are all examples of professionally managed pooled funds. Investors in pooled funds benefit from economies of scale, which allow for lower trading costs per dollar of investment, and diversification.
The term offshore refers to a location outside of one's home country. The term is commonly used in the banking and financial sectors to describe areas where regulations are different from the home country. Offshore locations are generally island nations, where entities set up corporations, investments, and deposits. Companies and individuals (typically those with a high net worth) may move offshore for more favorable conditions, including tax avoidance, relaxed regulations, or asset protection. Although offshore institutions can also be used for illicit purposes, they aren't considered illegal.
Investment philosophies and constraints
An investment philosophy is a set of beliefs and principles that guide an investor's decision-making process. It is not a narrow set of rules or laws, but more a set of guidelines and strategies that take into account one's goals, risk tolerance, time horizon, and expectations. As such, investment philosophy often goes hand-in-hand with a compatible investing style. Popular investment philosophies include value investing, focusing on shares that the investor believes are fundamentally underpriced; or growth investing that targets those stocks that are in the growth or expansion phase, and investing in securities that provide a return in interest income. Technical analysis and fundamental analysis are another pair of investment philosophies.
- Duration : 10 week
- Max Students : 1000
- Enrolled : 55
- Re-take Course : 1
- Assessments : Self