Building Wealth

Money from hundreds individual investors are pooled together to buy a large number of different assets.

• Bonds

• Share

• Unit trust funds

* Similar to Unit Trust, but invest in property & real estate

* Receive dividends

• Property

• REIT

* a.k.a equities or stocks (represent ownership in company)

* Receive dividend on maturity

* Have potential to generate high returns

• Shares

• Bonds

* Most common form of investment

* Very secure

* Provide very little income

• Saving account

• ASB

• Cash and fixed interest investment

* Long-term investment ( > 1 year )

* Receive steady income stream through interest payment

• Bonds

• Forex

• Shares

• Unit trust

* Increase in capital value over time

* Earn rental income from tenants

• REIT

• Property

Define “Don’t put all your financial eggs into one basket”.

• To make fried rice

• Put your money in different types of investment

• High risk, high return

• Put all your money into one type of investment

THE SAVING HABIT: Save at least 10% of salary.

• CORRECT

• WRONG

FINANCIAL SCAMS: Promise high return (20% - 30%) with little or no risk.

• TRUE

• FALSE

Invest in stock market : High risk, high return. Why invest in stock consider high risk?

• because it is suitable for medium-term investment

• because it provides high income

• because share price move up & down due to many factors