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Understanding investments

Understanding key investment concepts is the first step to making well-informed decisions about your financial future.

From share market basics to insights about investment risk, our education series  can help build your knowledge and set you on the path to achieving your financial goals.

Please note that NAB Asset Management has not taken into account individual investor objectives, financial situations or needs. If you need help with your investment strategy you should speak to an authorised financial adviser.

Why understanding risk matters

Did you know that every type of investment has some risk? Investments that are expected to have higher returns also have higher risk. You need to be comfortable with the level of risk you’re taking.

Why do markets go up and down?

Markets will always rise and fall. But while changes in the value of your investments can be unsettling, it’s important to take a long-term view.

What is diversification?

Putting all your investment eggs in one basket can work when the investment is performing well, but could leave you very exposed if anything goes wrong. Diversification - spreading your money across different investments - can help you manage that risk.

Why invest for the long term?

As a rule of thumb, if you want higher returns, you should be prepared to hold onto your investments for a number of years - and expect that they may fluctuate in value a lot over time.