Risk and reward

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9. Conclusion

The finance industry has built its products around the concepts of risk and reward.

Bank accounts, gilts, bonds, mortgages, pensions, investment trusts, unit trusts, options, warrants - all these come in numerous different types, and each one is designed to cater to investors who appear in different places on the risk/reward scale.

The key to choosing the right product for you, is to know where you appear on that scale. That will depend on:

• how much money you have
• your age
• your income needs
• your knowledge and skill
• your temperament
• your tax position

Get to know yourself, then get to know the products, and you have a good chance of investing in a way that fulfils your needs.

You have now completed the course. To test your knowledge, take the Assessment test.

1. The right place for your spare money? 2. The golden rule 3. Stock market performance and inflation 4. Stock market performance compared to savings accounts 5. Specific risk 6. Market risk 7. Pound cost averaging - a way round risk 8. Overseas investments - currency risks 9. Conclusion

• Against the Gods