The difference between saving and investment:
It is usually measured by liquidity; saving is characterized by high liquidity and is used for incidental purposes, while investment has lower liquidity and is used for long-term matters.
Saving from the perspective of Mr. Al-Nuaimah comes in two forms:
- Consumption saving, which is in cash or in highly liquid financial products.
- Investment saving, which is in products with lower liquidity, and exiting them quickly causes a loss.
Factors affecting the investment process:
- The investor’s age.
- The investor’s consumption behavior.
- Financial capacity.
How to obtain correct investment information:
- The source of investment information must be official and reliable.
- Information is obtained according to the type of investment.
Precautionary measures to reduce investment risks:
- Diversification of assets.
- Reducing the correlation coefficient between assets.
- Understanding the nature of the investment to protect it.
