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Saving your money in a bank may not be an effective safeguard against inflation but does offer you the following benefits:
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Maximising investment return–Saving can help a customer make a fortune for the first time and use it to generate substantial returns on further investments. |
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Low-risk–Saving is the most direct and the most low-risk means of securing capital and is particularly suitable to customers unfamiliar with the investment market. |
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Generating high annual interest rate–Saving up a fixed amount each month (future value time deposit account) gives you a higher interest rate. |
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Dollar-cost averaging–Saving up each month for investment savings would minimise your exposure to market fluctuations. |
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Actually investment is not for everyone. It depends on whether you are psychologically prepared. |
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Although for young people, time is on their side, some are more aggressive while others are more conservative as different people have different risk-taking potential. |
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For example, in the face of the recent global stock market fluctuations, some may still enjoy a good night’s sleep while those who are more conservative may lose sleep. Investors should opt for a simple savings plan if they are easily affected by the ups and downs in the markets. |
Source: Mr Patrick Lu. Head, Wealth Advisory & Product Distribution. Standard Chartered Bank (Hong Kong) Limited |
