Investments are subject to market volatility which may affect the value of investment and have high risk with high return.
It can be for short, medium and long term.
You need to know and understand the types of investments which are called asset classes: equities (shares), bonds (fixed income), property and cash equivalents (cash in hand or money markets); these can be combined in building a balanced portfolio. Then you ask yourself: "What can I invest in?'' The answer to that is, it will depend on your risk appetite and your goal. Contact an investment expert or a financial adviser to help you diversify your portfolio.
One of the most common mistakes that people make is that they look at past performance and make a decision based on that, which is incorrect. You need to understand the objective of the fund you are investing in and your risk profile and make sure it is in line with your goals.
Remember when the first wave hits you (first hint of loss) do not rush to get out of the ocean, be patient, stick it out and you will enjoy the outcomes.
*Zaba is the owner of Tokoloho Financial Services, an insurance
brokerage. She is also the co-author of Save Invest Pros per and is an executive member of the Financial Services Intermediaries Network, working on a policy within the insurance industry.