Who needs to know how to invest and manage money? Most people think that rich people or People who do investment work need it, but everyone except those who do investment work should understand it. Why investment is needed? Because if the annual inflation is 2%, things will be twice as expensive in 35 years. In order to fight inflation, investment should be used to maintain purchasing power or improve the quality of life. Because of compounding interest, the sooner you start investing, the better. The first thing to do when investing is to avoid making mistakes. Investors are most afraid of making big mistakes, especially when motivated by greed and fear. When investing, you must first understand your risk tolerance. Risk cannot be eliminated, but it can be diversified. The biggest advantage of asset allocation is to diversify risks.

Implemented by Department of Mathematics
Date: 2024/11/28