In Part 2 of our series on ‘How to invest in shares—tips for beginners’, we examine asset classes, industries, and indices.
The term asset class refers to a set of related investments that have similar risk and return characteristics.
Industries, or sectors, are groupings that share general industrial and economic themes that take the company’s core business activities into account.
Indices give a basic idea of how well (or badly) the overall market is doing, and these are good to use as a benchmark.