Investments - PERSONAL FINANCE - Lecture 8 notes

Module: Personal Finance


Lecture 8 – Investments


We will go through all the different types of investments that exist.

Property can be an investment. You can invest property through trading.


Learning Outcome
 Range of investments available
 Relationship between risk and return
 Benefits of collect investments
 Tax effective ways of investing


World Stock Markets Comparison
 We are now much more global in our investing
 The US had the bulk of the market in 2017
 The world stock market has shifted in their focus


Chart 2: Industry weightings in the USA and UK, 1900 compared with 2017
 You need to keep track of market news so that you know where to invest your
money
 The digital currency has done really well. Initially nobody believed in it. Now
it’s been used in place of money.


UK Returns from equities, bonds and bills
 Bonds are very secure and are much more long term
 Equity has done really well – people are actively investing in it.

The higher the risk, the higher the return.


Dimensions of investing
 Cost of investment
 Return on that investment
 Risk you are faced with

Attitudes to risk