Fundamentals
Build your knowledge
The market may shift and the economy may change, but the fundamental principles of investing always apply. Some of the basic concepts you need to know are:
- Asset classes — All assets are not created equal. Learn about the basic types of asset classes and how they differ
- Compounding — An understanding of how assets accrue interest is central to appreciating the long-term power of investing
- Diversification — Spreading out your risk by diversifying your assets is an important investment strategy
- Asset allocation — Working with your financial advisor, it's important to choose investments that create a balanced portfolio specific to your goals and risk tolerance
- Systematic investing — Regular investing helps you tap the benefits of dollar cost averaging, a strategy that may even out market fluctuations
Learn more
Explore other Investing Essentials topics through the menu to the left. Access extensive reference materials through the Literature Library. Or contact a financial advisor for advice on the right investment strategy for your specific goals.
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Why do I need a financial advisor?
A regular investment program neither provides assurance of making a profit nor guarantees against loss in a declining market. You should consider your ability to make regular investments through periods of fluctuating price levels before choosing any regular investment plan.