Instruction:
What is the best way to invest my money?

Response:
There is no one way to best invest your money, it is based on multiple factors that determines how you should allocate in different asset types. Here are some factors that influence your investment allocation.

- Time horizon: This is the amount of time you intend to have your money invested. This is important as different asset classes are impacted more or less by short term market conditions. Based on how long you wish to be exposed to the market choosing an asset type that aligns with your time horizon is very important in your investment strategy.

- Risk Profile:  Indicates how confortable you are with the impact fluctuating market conditions have in your investments. Higher risk assets offer the biggest returns but they also have a higher chance of going down or loosing your investment completely. Understanding your risk profile is the first step in investing your money well. There are different investments assets that fit into different risk levels, a combination of these will offer a balanced way of investing your money. 

- Active/Passive investor: Depending on how much you want to be involved in the asset selection and allocation you would be considered an active investor or passive investor. Active investors are investors that spend extensive amount of time analysing the market and choosing assets for their portfolio. These investors may invest directly into stocks or stock options. Passive investors are investors that want to be exposed to the market but don't want to spend extensive amount of time selecting their assets, these investors leverage ETFs or mutual funds, that bundle different asset classes in one asset, to be exposed to their desired market without the need of choosing their underlying assets.. 

Their is no right or wrong way of investing your money, it is important to understand what type of investor you are and choose what works best for you.