Financial Investing Presentation to USF Graduate & Professional Student Council 05/21/10 Delroy M Hunter . The Investment Process. What is INVESTING? Is it different from SAVING? Saving requires the consumption of only a part of your income
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Financial Investing Presentation to USF Graduate & Professional Student Council
Delroy M Hunter
What is INVESTING? Is it different from SAVING?
What are the implications of “investing”?
1. Requires conscious, active (not passive) decisions
2. A crucial decision is the allocation across asset classes
3. Investing is goal oriented
1. Reduce current consumption (save)
2. Invest using a two-step, “top-down” process
3. Enjoy higher (real) consumption at end of investment horizon
What is Asset Allocation?
Essentials of Asset Allocation
Main asset classes
There is a risk-return trade-off to investing in risky securities
Higher risk securities are priced to offer higher returns
– see a broker
- through mutual fund families
- through sector-focused ETFs