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Lesson 12 transcript

As we come to the end of this course, let’s go over the important key takeaways from the lessons.

1.  Investing means putting your cash to work, growing your money beyond your regular income, with the aim to increase your wealth over the long term.

2. Before making any moves, consider where you stand financially. Have you got any debt? Have you got an emergency fund?

3. Be clear on your financial goals. Couple these with your time horizon and risk tolerance. This will determine where and how you should invest your money. In a nutshell, higher risk tolerance equals more equities and fewer bonds.

4. There are many different ways to invest, including taking a passive or active approach. Many investors hold ETFs due to their generally low fees, convenience to invest in different markets, and to easily diversify their portfolio by accessing a basket of shares within one trade.

5.  Create your own universe by building your portfolio like the solar system, using the core-satellite approach, mixing and matching ETFs which offer broad market exposures for your core, and niche markets or themes via ETFs or individual shares as your satellites.

6. Benchmark your shares or ETF’s performance against market indices to keep track of your performance and to decide when you might want to buy or sell your investments or readjust your allocations to best suit your investing goals.

7. Stay consistent and remember the magic of compounding with dollar cost averaging and reinvesting your distributions if you’re invested in ETFs.

8. Diversification and rebalancing can help you smooth your portfolio’s returns and keep your risk level on track. If you are willing to get started and to be committed to the long term, you’ll have everything you need to be a successful investor.

You’ve completed Betashares explains Investing! Take the next step and register your interest for our next course, ETF basics, coming soon.

Betashares Capital Limited (ABN 78 139 566 868 AFSL 341181) (Betashares) is the issuer. Before making an investment decision, investors should consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD), available at www.betashares.com.au. This information does not take into account any person’s objective’s, financial situation or needs and is not a recommendation or offer to make any investment or to adopt any particular investment strategy. Investors should consider the appropriateness of the information taking into account such factors and seek financial advice. Investments are subject to investment risk, investment value may go down as well as up, and investors may not get back the full amount originally invested. ASIC’s MoneySmart website has useful information for people considering investing. The MoneySmart resources can be found here – https://www.moneysmart.gov.au/investing. ASIC’s MoneySmart website has no affiliation with Betashares.