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Securities and Investment FAQ

FAQS

What is the 10/5/3 rule of investment?

The 10/5/3 rule is a guideline for expected long-term investment returns:

  • 10% – Expected average annual return from stocks/equities.
  • 5% – Expected return from bonds.
  • 3% – Expected return from cash savings.

This rule helps set realistic return expectations over time.

 

  • Before investing, ask yourself:

    1. What is my investment goal? (Retirement, wealth growth, passive income, etc.)
    2. What is my risk tolerance? (Low, medium, or high risk)
    3. How long can I invest for? (Short-term vs. long-term investments)
    4. Do I understand the investment? (If not, research before committing!)
    5. What are the fees and tax implications? (Hidden charges can reduce returns)
  • Start early – Compounding works best over time.
  • Diversify your portfolio – Spread investments across different asset types.
  • Invest for the long term – Avoid emotional, short-term decisions.
  • Understand risk and return – Higher returns usually come with higher risk.

  • The 4 C’s of investing help assess investment opportunities:

    1. Cost – What are the fees, taxes, or charges?
    2. Consistency – Has the investment performed well over time?
    3. Clarity – Do you understand how it works?
    4. Confidence – Does it align with your financial goals?

  • The four primary investment categories are:

    1. Stocks (Equities) – Ownership in companies with high return potential.
    2. Bonds (Fixed Income) – Loans to governments or companies with lower risk.
    3. Real Estate – Investing in property for rental income or capital growth.
    4. Cash & Cash Equivalents – Savings accounts, money market funds, and low-risk assets.

Originally from marketing, the 4 P’s (Product, Price, Place, Promotion) have evolved into the 4 C’s, focusing on customer-centric investing:

  • Product → Customer Needs – Does the investment suit your financial goals?
  • Price → Cost – Are there hidden fees, commissions, or tax implications?
  • Place → Convenience – Can you easily access and manage your investment?
  • Promotion → Communication – Are you well-informed about risks and benefits?

  • Investors should focus on:

    1. Risk, Return, and Liquidity (Balancing potential gains, risks, and ease of selling).
    2. Time Horizon, Taxes, and Costs (How long to invest, tax efficiency, and fees).
    3. Diversification, Inflation Protection, and Growth (Spreading risk, maintaining value, and maximizing returns).

Investors in People (IIP) is a framework for improving businesses and organizations, based on four core principles:

  1. Leading – Strong leadership to inspire and guide employees.
  2. Supporting – Providing training and development opportunities.
  3. Improving – Encouraging continuous improvement and innovation.
  4. Sustaining – Creating long-term success and adaptability.
  • Risk Tolerance – How much risk are you willing to take?
  • Investment Timeframe – Short-term vs. long-term investing.
  • Diversification – Balancing different asset types to reduce risk.
  • Market Conditions – Economic trends, inflation, and interest rates.

The 4 C’s of security refer to key areas of cybersecurity and risk management:

  1. Confidentiality – Protecting sensitive data from unauthorized access.
  2. Compliance – Following legal and regulatory security requirements.
  3. Continuity – Ensuring operations continue despite security threats.
  4. Coverage – Having comprehensive protection against cyber risks.