Understanding Financial Products
Some financial products provide convenience to our everyday lives, such as having a bank account to manage our money. Other products like insurance provide financial coverage against a range of events. Investment products may help us grow the money we have for purposes such as our retirement.
Before you purchase any financial product, do learn about the characteristics of these products as well as the costs, limitations or potential risks they may have.
Read on to find out how each product may or may not be suitable for your needs.
A bank account is a convenient way to help you manage your money. A bank account can help you keep track of your savings and how you spend your money. Other banking services and products include Overdraft, Giro, Cheques and Credit Cards. Read more..
Insurance gives some financial protection or coverage against a range of events which could cause you or your dependants some loss. If the event happens, the insurance company or insurer which sold you the policy will pay you an agreed amount, or an amount to cover some or all of the loss. Read more..
A debt is the amount you owe or borrowed from someone. Loans, amounts due on credit cards and overdrafts are different forms of borrowing. Before you borrow, think about whether getting into debt is right for you. Read more..
Before you start investing, find out about basic investing concepts like how return and risk are related, how to manage risk through diversification and asset allocation, what investment horizon means and how dollar cost averaging differs from market timing. At all times, you should be clear about your needs, your ability to withstand risk and losses, and how well you understand a product before investing. Read more..