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Stock Exchange Chairman: Investing in the money market is not exclusive to the rich and professionals

With the increase in the demand for investment in the money market recently, following the propaganda campaign “Don’t Miss the Stock Exchange”, misconceptions about investing in the stock exchange spread, most notably that investing in the money market is limited to the rich and professionals only, and that the ordinary citizen cannot invest part of his savings in it, and explains Dr. Mohamed Farid Saleh, Chairman of the Board of Directors of the Stock Exchange, the reality of these concepts.

Dr. Muhammad Farid said that there is a belief that investing in the stock market is limited to professionals and the rich, and this is not true, as the stock exchange is not limited to a particular category, but is available to all investors, however, the method of trading varies according to the type of investor, adding that there is a type of investors who have time Adequate knowledge of the basics of investing in the money market and surplus funds; This is an important factor because investing in the money market requires the use of savings that are surplus to their needs and not the funds used to meet their necessary needs. This type of investor can invest himself provided that he follows the advice of diversifying investments.


Farid explained, in a video interview to “Youm7”, the importance of diversifying investments, saying, “Diversification of investment in the stock exchange means not to focus investment in a specific stock or a specific sector, but to diversify investments in more than one stock and within several sectors to avoid risk,” adding that Diversification of investment is something that citizens follow in daily life, for example, by diversifying the placement of funds in more than one place or diversifying the lines of mobile operators to ensure the availability of the service.


The Chairman of the Stock Exchange added that the second type of investors are those who do not know the basics of investment and do not have time to follow the performance of stocks, but he wants to invest part of his savings in the Stock Exchange, and this type can invest in the Stock Exchange through investment management companies, which obtain a license from the Supervisory Authority Finance on the same terms as brokerage companies, and these companies can manage the investments of this type of investors, by identifying the size of the investor’s risks and his need for these funds. If the investor wants it in the short term, he can invest in fixed income tools such as treasury bonds and corporate bonds, and if his need is long It is possible to diversify the investment in equity and equity instruments.


And there is a third type of investors who do not have enough money to contract with investment managers and do not have enough time to follow up on the performance of stocks, and this type can invest in the stock market through gradual cumulative savings in securities or investment funds.