I attended a workshop by Manisha and Karam from HSBC on investing. They shared key insights into investing to the business and economics students. They defined investing as putting your money into assets that you believe will appreciate in value over time, such as stocks, with the aim of selling for a profit later.

They made an important distinction between saving and investing. Saving is primarily for short-term goals and provides a guaranteed return based on the advertised AER, which is appealing as it minimizes risk. On the other hand, investing is geared towards long-term objectives, as it has the potential to yield higher returns. This is crucial because inflation can erode the value of cash savings over time.

Manisha and Karam also discussed the pros and cons of various investment methods. Share dealing allows for direct ownership but requires more market knowledge. Funds offer diversification and are managed by professionals, while stocks and shares can be lucrative but come with higher volatility and risk.

For those interested in investing, they recommended several approaches: seeking professional financial advice, using robo-advisors for automated guidance, or opting for a DIY strategy if you feel confident. They concluded by highlighting the significance of compounding interest, which can greatly enhance the growth of your investments over time, making it a powerful tool for building wealth.

By Sam MF