What is investing?
Investing involves committing money or capital to an endeavor (such as a business, project, real estate, or financial asset) with the expectation of obtaining an additional income or profit. The primary goal of investing is to grow wealth over time.
What is unit trust fund?
A unit trust fund is a type of collective investment scheme where investors pool their money together to invest in a diversified portfolio of assets, managed by professional fund managers. Each investor buys units in the trust, representing a portion of the holdings. The value of these units fluctuates with the performance of the underlying assets. Unit trust funds offer an accessible way for individuals to invest in a diversified portfolio without needing significant capital or specialized knowledge.
What is Shariah certified equities?
A Shariah-certified instrument is a financial product that complies with Islamic law (Shariah), which prohibits interest (riba), excessive uncertainty (gharar), and investments in businesses considered haram (forbidden), such as alcohol, gambling, and pork. These instruments, such as Sukuk (Islamic bonds) and Shariah-compliant stocks, are structured to ensure that investments are ethical and adhere to Islamic principles, providing a way for Muslims to invest while staying true to their religious beliefs.
How do you make money from investing?
You make money from investing through two main ways: capital appreciation and income. Capital appreciation occurs when the value of your investments, such as stocks, real estate, or other assets, increases over time, allowing you to sell them at a higher price than you paid. Income is generated through dividends from stocks, interest from bonds, or rental income from real estate. Both methods can help grow your wealth, either by reinvesting the returns or using the generated income for other financial goals.
How does machine learning and AI contribute to the investment process?
Machine learning and AI can enhance investment decisions and portfolio management by analyzing vast amounts of data to identify patterns, trends, and correlations that may not be evident to human analysts. These technologies can predict stock prices, assess risks, and optimize asset allocation based on historical data and market indicators. AI-driven algorithms can also design trading strategies to capitalize on market opportunities, adjust portfolios in real-time to maintain desired risk levels, and personalize investment strategies to meet individual goals and preferences, leading to more informed and efficient investment management.