Understanding Yourself
SIAS 3 Dimensions of Investing
Questions to Ask Before Investing
SIAS 3 Dimension of Investing
Video - Financial Needs Analysis (FNA)
Video - Investment Risk Highlights and 3 Important Dimensions of Investing
Know Yourself
• Should spend more or should I save?
• Should I keep as deposits or should I invest?
• How much risk can I take?
• How much risk should I take?
• How long should I stay invested?
Know the Products
• What investments are available?
• How safe are these investments?
• Will I be able to get cash back when I need it?
• How long does it take for the investment to return me the cash?
Know the Strategies
• How much do I invest in each type of investments?
• How can I protect my investments?
• Do I invest long-term or adjust consistently in the short-term?
• How often should I review my investments?
• When should I take profit and cut losses?
• How do I take advantage economic growth of other countries?
• Should I invest in the local markets only or global markets?
• Should I borrow to invest?
The Consequences of Not Using the 3 Dimensions
This is an important first step in your investment journey.
Investors must know the following before investing:
Financial objectives.
• Risk appetite or preference (Risk you like to take).
• Risk budget (Risk you can actually take).
• Financial health/state (Income, Expense, Assets, and Debt).
• Any other potential financial issue.
• The “Financial Needs Analysis” is a process to help investors understand their financial situation and needs.
• Investors must be honest in disclosing information to allow the process to discover your needs.
• FNA is based on limited information inputs. Investors should therefore adjust their FNA outputs accordingly with information not asked in the FNA itself.
• FNA should also be reviewed periodically to keep the FNA up to date.
