Investment Fundamentals Guide

Investment fundamentals

An introduction to the basic concepts of investing

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This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice.

Vanguard Asset Management, Limited only gives information on products and services and does not give investment advice based on

individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of

the products described in this document, please contact your financial adviser.

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Investment fundamentals aims to demystify the process of using money to make

money and give you a basic introduction to the key investment topics.

This guide takes you through:

1

Getting ready to invest, including goal setting and understanding the impact of cost

and risk.

2

The importance of asset allocation and the different asset classes.

3

The different types of investment management.

4

Looking after your investments over time.

From reading this guide you will understand the fundamentals of investing and

the key steps needed to begin to work with your financial adviser to develop your

investment plan.

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 3

Getting ready to invest

4

Saving versus investing

5

Getting started – discipline and planning are key

6

Define your goals and investment time frame

8

Decide if you need income, growth or both

9

Understand the risks

10

Diversify to minimise risk

11

Recognise the importance of cost and tax

13

Asset allocation

14

Understand asset allocation

15 Equities

16 Bonds

18 Property

19

Cash investments

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Asset allocation and investor types

21

Asset classes over time

22

Types of investment management

23

Using pooled funds

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The...