Investment assets:
We must ensure diversification across different assets: cash, stocks, and real estate, in addition to sukuk and alternative investments.
Geographic diversification:
Geographic diversification in investment should be ensured; for example, diversifying stocks
across the Kingdom and the Gulf, as well as emerging-market and developed-market stocks.
Key criteria for comparing investment fund managers:
- The fund manager’s performance over long time periods.
- The level of risk disclosed by the fund manager.
How to understand the financial position of the company invested in:
The best way to obtain a comprehensive explanation of companies is through financial statements and annual reports.
Key items included in annual reports:
- Decreases and increases in profitability ratios.
- The company’s debt level.
- The extent of the returns the company generates.
The two regulators for investing in securities and Saudi currency:
- Capital Market Authority.
- Saudi Arabian Monetary Authority.
