Financial Education

Our financial education section offers resources and information to help you learn more about personal finance and investing in order to achieve your financial goals.

Investment Process

Taking a methodical approach to investing is crucial for long-term success and achieving your financial goals. By following a systematic process, you can make informed investment decisions and minimize risks. Here are six steps to consider when investing:

Define Your Financial Goals: Determine your short-term and long-term financial goals, such as saving for a down payment on a home or funding your child's education. Calculate the monthly amount you need to save and invest to achieve these goals.

Assess Your Risk Tolerance: Evaluate how much risk you are comfortable with in your investment portfolio. Factors like age, income, experience, and personal preferences will influence your risk tolerance.

Determine Your Time Horizon: Consider the length of time you have to invest and when you will need to access your funds. Your investment time horizon will impact the types of investments you choose and the level of risk you can afford.

Develop an Investment Strategy: Based on your goals, risk tolerance, and time horizon, create a diversified investment strategy. Spread your investments across different asset classes to minimize risk and maximize returns.

Implement the Strategy: Put your investment strategy into action by selecting specific investments that align with your strategy and allocate funds accordingly. Ensure your choices are diversified and aligned with your goals.

Monitor Investment Performance: Regularly review your investment portfolio and make adjustments as needed based on changes in your financial situation or market conditions. Stay informed about market trends to capitalize on new opportunities.

By following these steps and maintaining a methodical approach, you can make well-informed investment decisions and increase your chances of achieving your financial goals.

Define your Financial Goals

Defining your financial goals is a crucial first step in the investment process. It involves identifying your short-term and long-term objectives and understanding what you want to achieve with your investments. Your financial goals may include saving for a comfortable retirement, buying a house, funding your children's education, or starting a business. By clearly defining your goals, you can establish a clear direction for your investments and determine the level of risk and return that aligns with your objectives. Additionally, it is important to quantify your goals by setting specific targets, such as the amount of money you need to save or the timeline within which you want to achieve your goals. This helps in creating a realistic and actionable investment plan. Taking the time to define your financial goals allows you to prioritize your investments and stay focused on what you want to accomplish, ultimately increasing your chances of success.

Assess Your Risk Tolerance

Risk is an inherent part of investing, and understanding and managing that risk is crucial to achieving balanced portfolio in order to reach your investment goals.

Risk refers to the potential for loss of capital or decline in the value of your investments.

All investments carry some level of risk, and the key is to understand the level of risk, that you are comfortable with and that is appropriate for your investment goals and time horizon.

There are several types of risks associated with investing, including:

Market risk: the risk of losses, due to changes in the overall market or economyCredit risk: the risk of losses, due to default by a borrower, such as a company or government entityInflation risk: the risk of losses, due to the erosion of purchasing power over time caused by inflationInterest rate risk: the risk of losses, due to changes in interest rates, that affect the value of fixed-income investmentsLiquidity risk: the risk of losses, of not being able to sell an investment quickly enough or at a fair priceCurrency risk: the risk, that fluctuations in exchange rates will impact the value of your investmentsGeopolitical risk: the risk, that political instability or conflicts may affect the value of your investments

Generally, higher returns often come with higher levels of risk and vice versa. For example, Stocks have historically provided higher returns than Bonds, but they are also more volatile and carry a higher level of risk.

When determining your investment profile, it's important to consider your risk tolerance, or your ability to handle fluctuations in the value of your investments. A financial advisor can help you assess your risk tolerance and design a portfolio that is appropriate for your individual needs and goals.

Managing Risk

The relationship between risk and reward in investing is often described as a trade-off. Generally, greater the risk of an investment, higher the potential reward or return. However, there is no guarantee that an investment with higher risk will lead to higher returns.

Investments that are considered low-risk, such as government bonds or savings accounts, generally offer lower returns compared to high-risk investments such as stocks or real estate. High-risk investments have the potential to provide higher returns but also carry a higher risk of loss.

Investors must balance their desire for higher returns with their tolerance for risk. The key is to find a balance that aligns with your financial goals and risk tolerance. This means that it's important to diversify your investments and not put all your eggs in one basket. By spreading your investments across different asset classes and industries, you can reduce the overall risk of your portfolio and potentially increase your chances of achieving your financial goals.

Minimize the Risk


Diversification is widely considered as one of the best tools to minimize risk when it comes to investing. Diversification involves spreading your investments across different asset classes, industries, and geographic regions. This approach can help reduce the impact of any one investment underperforming, as losses in one area may be offset by gains in another. By diversifying your portfolio, you are essentially not putting all your eggs in one basket, and thus reducing the overall risk.

For example, instead of investing all your money in one company's stock, you can spread your investments across various stocks in different industries, as well as bonds and other asset classes. This diversification can help to reduce the overall risk of your portfolio and potentially increase your chances of achieving your investment goals. However, it's important to keep in mind that diversification does not guarantee against losses or ensure a profit, and that all investing involves risk.

Invest in Funds

Investing in funds is another strategy for managing risk in investing.  Funds are managed by professional fund managers who have the expertise to manage risk and make informed investment decisions. Fund managers conduct thorough research on the companies or assets they invest in and continuously monitor their performance to make necessary adjustments to the fund's portfolio.

Investing in funds can be a good idea for risk management, because funds allow investors to diversify their portfolio across different assets, which can help reduce risk. When investing in funds, investors can choose from a variety of asset classes, such as stocks, bonds, and real estate, and also select funds with varying levels of risk.

However, it is important to note that investing in funds does not eliminate risk entirely, as all investments carry some level of risk. It is important for investors to carefully review a fund's prospectus and understand the fund's investment objectives, strategies, and risks before investing.

Investing for Long Term

Investing is a long-term commitment, and it's essential to understand that short-term market fluctuations are a natural part of the process. It can be tempting to make decisions based on short-term market trends, but doing so can be detrimental to your investment strategy. Instead, it's important to maintain a long-term perspective and stay committed to your investment plan.

Over the long-term, investments such as Stocks and other assets have shown strong growth, despite short-term volatility. While it's natural to feel unsettled during market downturns, it's essential to keep in mind that these fluctuations are typically temporary and that the market has historically rebounded over time.

By maintaining a long-term perspective, investors can avoid making impulsive decisions based on short-term market movements. This allows them to stay focused on their investment goals and remain committed to their investment strategy. Over time, this can lead to more consistent investment returns and greater overall success in achieving their financial objectives.

Determine Your Time Horizon

Time Horizon means how long we want to invest for:

Short term – under 1 yearMedium-term – 1 to 3 yearsLong-term – over 3 years

If you have a longer investment horizon, you may be able to take on more risk in your investments, because you have more time to recover from short-term losses. Consequently, you can look at equity markets, closed-end or interval funds, and commodities. But if your investment horizon is shorter, you may want to consider less volatile investments, because you will not have as much time to recoup any losses, therefore Money Markets and Open-end mutual funds will be the ones to look at.

Saving for a wedding or a holiday is a short-term investment.Saving for the down payment on a house or for child’s education is a medium-term investment.Saving for your retirement or building wealth for family is usually a long-term investment

Develop an Investment Strategy

Considering your investment goals, time horizon and risk tolerance, think about what kind of investment strategy is suitable to you.

Income or Growth Investments

Income investments generate a steady stream of income in the form of dividends, interest, or rental income. These types of investments may be suitable for individuals who prioritize stability and want to generate a regular stream of income to meet their expenses or save for a specific goal.Growth investments focus on capital appreciation and may not provide as much current income. These types of investments may be more volatile in the short term, but have the potential for higher long-term returns. Growth investments may be suitable for individuals who are willing to take on more risk and have a longer investment horizon.

It's important to note that income and growth investments are not mutually exclusive, and many investment portfolios may contain a mix of both. An investor may prioritize income or growth depending on their specific investment goals and financial situation.

It's important to keep in mind that there is usually a trade-off between income and growth. Investments that offer higher potential returns typically come with higher risk, and may not provide the same level of income as more conservative investments.


Liquidity refers to how easily an investment can be converted to cash without significantly affecting its market value. Investments that are highly liquid can be easily bought or sold in the market, whereas investments that are less liquid may take longer to sell or may require a larger discount to be sold quickly. When considering liquidity, it's important to assess your immediate and future cash needs. An investment that is highly liquid can be useful for individuals who need to access cash quickly or may need to sell the investment on short notice. On the other hand, less liquid investments may be more suitable for individuals who have a longer-term investment horizon and do not need immediate access to cash. 

Some investments that are generally considered highly liquid include:

Cash and cash equivalents: These include savings accounts, money market accounts, and certificates of deposit.Publicly traded stocks and bonds: These investments can typically be bought or sold quickly through a brokerage account.

Less liquid investments may include:

Private equity investments: These investments in private companies may take longer to sell and require more due diligence.Real estate: While real estate can be a valuable long-term investment, it may take longer to sell and require more paperwork than other investments.

Ultimately, the right level of liquidity for your portfolio will depend on your individual needs and circumstances.

Implement the Strategy

Once you have devised your investment strategy, it is crucial to put it into action. Acting on your investment strategy involves selecting specific investments that align with your goals, risk tolerance, and time horizon. This step requires careful consideration of various investment options and allocating your funds accordingly. It is essential to ensure that your investment choices are well-diversified across different asset classes to mitigate risks and maximize potential returns.

While implementing your strategy, it is highly recommended to seek guidance from a trusted financial advisor. A financial advisor can provide valuable insights, expertise, and personalized advice tailored to your specific financial goals and circumstances. They can help you navigate the complexities of the investment landscape, analyze market trends, and identify suitable investment opportunities.

Monitor Investment Performance

Monitoring the performance of your investments is an essential aspect of successful investing. Regularly reviewing and assessing your investment portfolio allows you to track progress toward your financial goals, identify potential opportunities or risks, and make informed decisions. Here are key points to consider when monitoring your investment performance:

Regular Portfolio Review: Set a schedule to review your investment portfolio at regular intervals. This could be monthly, quarterly, or annually, depending on your preferences and the nature of your investments.Evaluate Investment Returns: Assess the performance of each investment within your portfolio. Compare the returns achieved against relevant benchmarks or your predetermined expectations. This analysis will help you gauge how well your investments are performing and identify areas for improvement.Consider The Risk Management: Evaluate the risk exposure of your investments. Assess if the level of risk is in line with your risk tolerance and if any adjustments are necessary to maintain an appropriate balance between risk and potential returns.Stay Informed: Keep yourself updated on market trends, economic indicators, and industry news that may impact your investments. This knowledge will enable you to make informed decisions and adapt your investment strategy as needed.Seek a Professional Advice: Consider consulting with a financial advisor or investment professional. They can provide expert insights, assist with interpreting investment performance data, and offer guidance on potential adjustments to your portfolio.Rebalance and Adjust: Periodically rebalance your portfolio to ensure it remains aligned with your investment strategy and goals. This involves buying or selling assets to restore the desired asset allocation and risk profile.

By regularly monitoring the performance of your investments, staying informed, and seeking professional guidance when needed, you can make informed decisions to optimize your investment portfolio over time. Monitoring investment performance is an ongoing process that helps you stay on track toward achieving your financial objectives.