Slide MGT312 Slide09

Investment Fundamentals
Chapter 13

Investing Is More Than Saving
• Saving is the accumulation of excess funds.
• Investing is wealth creation.
• Investment assets are in the form of
securities.
• Investment portfolio consist of shares,
bonds, and money market instruments.

When to Invest?
• Having no extra money at the end of the
month.
• Being able to save regularly.
• Using credit wisely.
• Having insurance.

Reasons to Invest
• To increase current income.
• To meet retirement needs.

• To gain wealth.
• To achieve financial goals.

Sources of Funds to Invest
• Regular earnings.
• Extra funds.
• Employer pension plan
• Reduced expenses.

Types of Investment Returns
• Dividend gain.
• Capital gain.
• Rent.