Investments

Stock investing refers to buying and owning shares of a company's stock with the expectation of generating a profit from the appreciation in stock price or through dividends. By investing in stocks, people can become owners of companies and benefit from their success. It provides an opportunity for diversification, allowing individuals to spread their risk across different companies and industries. Stock investing can also protect against inflation, as stocks have historically offered a hedge.

Stocks represent ownership in a company, while bonds are debt securities issued by corporations or governments. Stockholders have an equity stake in the company and may benefit from its growth and profitability, while bondholders are lenders and receive fixed interest payments over time.

Stock investing involves risks such as market volatility, potential loss of capital, and company-specific risks. The value of stocks can fluctuate based on economic conditions, company performance, industry trends, and other factors.

You can minimize risks by diversifying your portfolio, investing for the long term, and having a balanced portfolio that includes a mix of different stocks and asset classes, such as bonds.

Dividends are payments companies make to their shareholders as a distribution of profits. Dividends are issued in the form of cash or additional shares of stock. Not all companies pay dividends, and the amount and frequency of dividend payments vary.

Based on the historical data, a diversified portfolio with a medium risk level is expected to return 6-8% per year. Based on your risk appetite, the 6-8% range increases or decreases. A higher risk means a chance of a higher return increases while also increasing the chance of a lower return. Please be advised that past performance is not a reliable indicator of future returns.

Your portfolio is managed using a ‘hybrid’ method. This means that it combines elements of both active and passive management. The active components include periodic rebalancing and tax loss harvesting to manage risk and maximize tax benefits. Passive management refers to a ‘buy-and-hold’ strategy for your portfolio. A buy-and-hold approach is when you buy investments and hold onto them for a long time, instead of frequently buying and selling. The goal is to benefit from long-term market growth and minimize the impact of short-term market fluctuations.