Principles of Evidence Based Investing

Evidence-based investing (EBI) is an approach to investing that relies on empirical research, data, and objective analysis to guide investment decisions rather than on speculation, emotions, or market predictions. The principles of evidence-based investing are grounded in academic studies and historical data, which have been shown to lead to better long-term investment outcomes.

What Are Shares

Ownership in a company. As a shareholder, you earn profits through dividends and can sell your shares for a profit if the company’s value increases.

What Are Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are companies that own, operate, or finance income-producing real estate across a range of property sectors. REITs allow individuals to invest in real estate without having to directly purchase, manage, or finance properties. They are designed to provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves.

What Are Managed Funds

Mutual funds, also known as managed funds, are investment vehicles that pool money from multiple investors to buy a diversified portfolio of assets, such as stocks, bonds, or other securities. These funds are managed by professional fund managers, who make investment decisions on behalf of the investors, aiming to achieve the fund’s stated objectives, such as capital growth, income generation, or a combination of both.

What Are Fixed Interest Investments

Fixed interest investments, also known as fixed-income investments, are types of financial instruments that provide a regular, predetermined return to the investor in the form of interest payments. These investments are generally considered lower risk compared to equities because they offer more predictable returns. However, the trade-off is that they typically offer lower potential returns than riskier investments like stocks.

What Are ETFs

Exchange-Traded Funds (ETFs) are investment funds that are traded on stock exchanges, similar to stocks. An ETF holds a collection of assets, such as stocks, bonds, commodities, or a combination of these, and aims to track the performance of a specific index, sector, commodity, or other financial benchmark. ETFs are popular among investors because they offer the benefits of diversification, flexibility, and typically lower costs compared to other types of investment funds, like mutual funds.

What Are Bonds

Bonds are a type of fixed-income investment where an investor lends money to a borrower, typically a government, corporation, or other entity, in exchange for periodic interest payments and the return of the principal amount (the face value or par value) at the end of a specified term, known as maturity. Bonds are a fundamental part of the financial markets and are often used by governments and companies to raise capital for various purposes, such as funding projects, paying off debt, or financing operations.

Three Common Investing Mistakes

Many people start out managing their own investments. But as their earnings and assets grow, their financial needs and challenges become more complex—and continuing to go it alone could prove costly in terms of investing miscues.