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Investment Strategies and Concepts: Keywords - Coggle Diagram
Investment Strategies and Concepts: Keywords
Core Investment Strategies
Dollar-Cost Averaging (DCA) 📈
Regular investments, fixed amount
Reduces impact of market volatility
Buys more shares at low prices
Lump Sum Investment 💰
Large single investment
Benefits if markets rise immediately
Risk: full exposure to downturns
Portfolio Management
Asset Allocation 🎯
Divide portfolio by stocks, bonds, cash
Balance risk vs reward
Diversification 🌎
Invest in various assets
Reduces risk of single market exposure
Risk Tolerance 📉
How much variability you can withstand
Determines strategy
Growth Mechanisms
Compound Interest 🔄
Interest on principal + accrued interest
Accelerates growth over time
Capital Gains 💹
Profit from selling assets at higher prices
Tax implications vary (short/long-term)
Investment Vehicles
Mutual Funds 🏦
Pooled investor money
Managed portfolio of securities
ETFs (Exchange-Traded Funds) 🔗
Traded like stocks
Lower fees, greater flexibility
Index Funds 🗂️
Track specific market indices
Low-cost, passive management
Bonds 📜
Debt securities with periodic interest
Repayment at maturity
Stock Market Terms
Blue-Chip Stocks 🔵
Reliable, well-established companies
Often pay dividends
Market Capitalization (Market Cap) 🧮
Total value of a company’s shares
Large-cap, mid-cap, small-cap categories
Bull Market 🐂
Rising prices, investor optimism
Bear Market 🐻
Falling prices, investor pessimism
Valuation and Metrics
P/E Ratio 📊
Share price vs earnings per share
Indicates over/undervaluation
Dividend 🏆
Company earnings paid to shareholders
Yield %
Income return on investments
Advanced Strategies
REITs (Real Estate Investment Trusts) 🏠
Income-producing real estate
No direct property management
Hedge Funds 📈📉
For accredited investors
High-risk, diverse strategies
Margin Trading 🔍
Borrowing money to invest
High potential gains/losses
Tools and Safeguards
Stop-Loss Orders 🚨
Automatic sell to minimize losses
Time Horizon ⏳
Investment duration planning
ERP and CRM 🖥️
ERP: Business process integration
CRM: Customer interaction management
Economic Influences
Inflation 📉
Decreases purchasing power
Impacts real returns
Volatility ⚡
Price variability of assets
High = risky, Low = stable
Liquidity 💦
Ease of converting assets to cash
Stocks > Real estate
Special Events
IPOs (Initial Public Offerings) 🌟
Private to public company transition
Raises capital for expansion