 Hey guys, it's MJ the students actually and in this video. I want to give a very quick overview of the investment world So basically it all comes down to the public and the public people like you and me your neighbors you know the postman all of us and Essentially we have two big demands. We have a demand for savings We want to savings products and we want some sort of risk protection So savings would be you know setting aside some money today in order for a future expense whether it be your child's Education buying a new car buying a house something like that even going on holiday These are all various cases of savings risk protection is anything from ensuring your car to ensuring Your life in case you die and someone having to take care of your kids all those type of things so the public has got these two two needs risk protection and Savings and they found that by combining together They can create certain products and when they combine together and someone creates a product an Institution is formed. So I want to come look at the six institutions that get formed when People group together Basically and you can see the red ones cover risk protection the blue ones cover Savings and the purple ones have a little bit of a savings component and a little bit of a risk protection now There are six types of institutional Investments six types of your institutional investors just like there are six fellowships that you can do your actual science in You can be an actuary in general insurance You can be an actuary in medical aid schemes You can be an actuary in life insurance. You can be an actuary in pensions You can be an actuary in finance and you can even now be an actuary in banking Well, this is only in South Africa, but it is going to become available Throughout the world in later times But what happens is the public will go to someone like a financial advisor who will then point them in the right direction For which institution they should give their money to Like said general insurer you give them money if you crash your car They give you money back medical aid scheme you give them money you get sick They give you money back life insurer you give them money you die and they give you money back Pension fund you give them money and then when you get old they give you money back And I think your banks and collective investments kind of speak for themselves, but then what happens is that? Investment consultants and this is where act trees can play quite a big role they will come to these institutional investors and Help them explain where they should put their money Essentially what they will do is they'll give their money to Certain funds and funds are run by asset managers now asset managers are people who have like a CFA or a degree in finance or something like that and the most common funds are hedge funds quant funds Quant funds is when it's a it's a fund that's based on statistical formulas to try and extract anomalies and get a little bit Extra-alpha then there's balance funds specialist funds funds index funds and then these asset managers go to the actual Market, so they'll go to the bond market. They'll go to the equity markets and property market and so forth now And that's where they'll deal with with brokers In this video, I'm not going to talk too much about the the documents But if you study at chiral science you will go into a lot of detail into what these documents actually are But if we zoom out and you can see it this is very I mean there still is the regulator who I haven't spoken about And he comes and you know makes everything complicated and weird He's made goals to protect the public from the asset managers, but we'll talk about that in another video Interesting things to point out is your general insurers and your banks because they're quite short term They're going to be putting a lot of their money directly into the money market Whereas your other funds who help other institutional investors who have more of a longer term Liabilities they're going to invest in more longer term assets such as bonds equities properties And I think that basically is how How investments work is you have the public they speak to their financial advisor They give their money to an institutional investor who gives them a product or a promise that then creates a liability They then contact an asset manager to invest that money in such a way that best matches the assets to their liabilities But now look as the public you can go I mean the public can be like screwed that I'm going to go straight here and invest with the asset managers Or you can actually go and invest in you know bond markets and equity yourself But it is by going through an institution that you're getting the benefit of people joining together Specifically when it comes to risk management when people join together Uncertainty does decrease and by joining together with certain investments. They can access bigger funds Because remember a big pension fund can get a much lower fee from an asset manager when they come with say a billion dollars Then you as an individual who comes with you know your little one million dollars So there is those advantages, but essentially I want this video to be very quick very short I wanted to give you guys just a very quick overview of how the investment Market works, and there we go. There it is in a picture Hope you guys enjoyed this video, and if you have any questions, let me know in the comment section below Cheers