Why People Invest
People invest for all sorts of reasons.
Investment – it's a word that we are used to hearing but not everyone understands what it means.
If anybody is thinking about investing they really need to understand how it works.
Deciding to invest, and what to invest in, depends on your personal circumstances. Something suitable for you may not be suitable for someone else.
Some things you need to think about include
- Your attitude to risk
- Your reasons for investing
- The amount you can afford to invest and
- How long you want to invest for
With investing, there is the potential that your money could grow quicker than it would if you put it into a savings account. There is also the potential that you could lose some or all of your money.
This is known as the risk / reward trade-off. The more risk you take with your investment the greater the chance of profits if it all goes right. But by the same token, the greater your losses if it all goes wrong.
There are many different types of investments available. In this series of introductory films we will look at a number of investments, what they are and some of the risks and rewards.