1. Investment Basics Yeshanew Belayneh Major: Economics Minor: Finance, Mathematics 2. Agendas Goldman Sachs Group Investment Risk profile Diversification Asset allocation Rebalancing 3. Goldman Sachs Group Inc. Investment banking Investment management Securities services 4. What is investment? how you make your money grow, or appreciate 5. Risk profile What is your investment objective? Preservation of capital Regular income Growth in capital horizon? Short, medium, or long term personality? Risk tolerance 6. Simple ways to minimize risk Diversification Asset allocation 7. Simple ways to minimize risk cont. Rebalancing 8. Conclusion Risk tolerance/aversion Investment timeframe Appropriate saving/investment vehicles Diversification