Diversification : Spreading your investments across assets helps reduce risk, so a loss in one won’t ruin your entire portfolio.
Compound Interest : Interest earned on both your initial investment and the accumulated interest—this powerful concept helps your wealth grow over time.
Risk Tolerance : Your ability to handle investment losses. Knowing your risk tolerance helps you choose assets that match your financial comfort level.
Asset Allocation : Dividing your investments among different asset types like stocks, bonds, or cash based on goals, risk, and time horizon.
Liquidity : How quickly an investment can be converted into cash without losing value. High liquidity means faster access to your money.