Investor Education – Is It Really Needed In Today’s World


Posted April 1, 2015 by 2020directinvest

Investor education is a must and an asset as it helps people to invest better. It also provides liquidity to the market and enables more investors to invest in the markets.

 
Sydney, Australia-----Education is very important in today's world to survive. In the world of investment, investors need to be fully educated and should possess full knowledge to ensure that they are investing their resources in their right avenues. The investment is usually done to obtain a return. Investor education is a must and an asset as it helps people to invest better. It also provides liquidity to the market and enables more investors to invest in the markets.

There are different products and instruments in which an investor can invest in. Investor education provides investor information on the risks associated with the products and how much return can be made out of it. Education also helps us to hedge our risks and think about the different options. It helps us to estimate the return we can make from a particular investment. For example, if a person is educated and well aware about mutual funds, they would prefer to invest in systematic investment plans in smaller denominations rather than making lump sum investments. This would help the investors to average their cost of investment irrespective of the market conditions

Similarly, if the investors are educated about the importance of investment and not trading they could make better profits in the market. To choose the best stocks and perform a market analysis, education is important. Investor education enhances the investors to make better decisions and make good returns from the market. People who are educated do not aim to predict or manipulate the market. They choose and invest well to ensure long term returns than short term small profits. Time and again the stock exchanges and the government initiate several educational programs to provide more information to the customers.

There are several external agencies also which conduct various short term courses to educate the investors. These come in different modules starting from the most basic to the complex trading strategies. This education program also explains on how to perform company analysis and technical analysis of a company before investing in the same. This education does not involve in the marketing or promotion of a particular form of investment, but explains about the different investment channels. New products like the exchange traded funds or gold funds are explained in the details to the investors.

Most people are unaware that they can invest to obtain tax benefits as well. To understand this thoroughly and make the best of the schemes, education is a must. Investor Education also helps to prevent fraud in the stock exchange transactions and to protect investors from making an excess loss. An informed investor is in a much better position to make minimal and money from sensible investments than an uneducated one. Trial and error is not the best method while investing in any format. Education clearly explains the risk aspects. Understanding the fundamentals of an investment firm is important. There are several advisors in the market who can help investors build their portfolios. But they would charge a huge sum for the same. Why pay more when you can educate yourself and make the best.

Company Overview :

2020 DIRECTINVEST help self-directed investors gain control of your financial future through high quality education and regular market insights.

Content Source : http://www.proskore.com/pressrelease.cfm?PRID=225512
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Issued By Leo Flynn
Website 2020 Directinvest
Phone 02 8273 2020
Business Address 18/1 Macquarie Pl
Sydney
Country Australia
Categories Finance
Tags australian index funds , fixed income investments , investment bonds australia
Last Updated April 1, 2015