Investment Management: 6 Things to Know

If you’re new to investing, there are lots of terms and concepts to understand. While it may seem intimidating, gaining an understanding of these six basic concepts can build your confidence in making investment decisions for yourself and the plans you serve.

Investment Management: 6 Things to Know

1. Risk and Return

Watch to Learn: How the levels of risk and return vary with each type of asset and why diversifying your portfolio helps manage risk.

2. Time Horizon

Watch to Learn: Why the time horizon of an investment is important to consider and how returns adjust over time.

3. Diversification

Watch to Learn: How asset classes perform differently from one another and why diversification is a key strategy for managing risk.

Portfolio Concepts and Management

4. Asset Allocation

Watch to Learn: Why it’s important to tailor your fund’s asset allocation to fit your current and prospective circumstances.

5. Know Your Plan

Watch to Learn: What questions you need to ask about your plan to help select the appropriate investment allocation.

6. Monitoring Your Investments

Watch to Learn: Why it’s important to continue to monitor your investments—being aware of fees, reviewing results and asking questions.

If you’re a trustee looking for more information, visit the International Foundation Trustee Resource Center to find these investment management videos and more!

Brenda Hofmann
Communications Manager at the International Foundation

Investments Institute

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