Basics Of Investing

Definition

Basics Of Investing. In the context of the Financial Competence Framework, Basics Of Investing is a topic in the Planning And Managing Finances subject matter domain.

Competences

Mastering the role of Basics Of Investing in financial literacy context requires the following competences:

Code	Competency Description	Competency Type
178	Knows the difference between saving and investing, and between debt and equity	Knowledge
179	Aware that some forms of investment are more liquid than others	Knowledge
180	Knows that the value of an investment may increase or decrease	Knowledge
181	Knows that different types of fees and charges (one-time and ongoing, direct and indirect) can have a substantial impact on the performance of an investment	Knowledge
182	Understands how changes in inflation, interest rates and/or exchange rates may impact on longer-term plans	Knowledge
183	Understands the difference between potential (unrealised) and realised losses or gains	Knowledge
184	Aware of the additional risks of making uninformed investment decisions	Knowledge
185	Understands basic investing concepts such as time-value of money, risk tolerance, investment horizon, and investment objectives	Knowledge
186	Can calculate the proportionate increase or decrease of the value of an investment	Skill
187	Confident to consider whether specific goals can be met by investing	Attitude
188	Confident not to invest if one does not understand the financial product or service	Attitude