Your ultimate guide to investing
If you’d like a quick intro on investing – watch this video. To get the full experience, keep scrolling and we’ll take you through everything you need to know.
We all have goals, and goals cost money
But here's the thing, most of us were never taught how to manage our money – which is crazy, because it's one of the most valuable skills we can learn! And that's what we're here to help with.
Let's get started.
The Koshary Index: Prices are increasing
The price of koshary has gone up by around 60% in the past year – you need almost double the money today to buy the same plate of koshary.
The inflation rate in Egypt is currently at a whopping 32.7%% (according to the Central Bank of Egypt).
If I don't invest - what will happen to my money?
Let’s assume that the inflation rate is at 10% – and you have EGP 10,000 saved up, uninvested. After 10 years, those same EGP 10,000 would be worth EGP 3,591 today.
Your money would lose 3x it's value!
If I don't invest - what will happen to my money?
Let’s assume that the inflation rate is at 10% – and you have EGP 10,000 saved up, uninvested. After 10 years, those same EGP 10,000 would be worth EGP 3,591 today.
Your money would lose 3x it's value!
If I do invest - what will happen to my money?
Let’s imagine 4 people. Each one of them put aside EGP 1,000 every month, from 1998 to 2021 (for 24 years)
- Person A: Under the matress
- Person B: In a certificate of deposit
- Person C: Bought gold
- Person D: Invested in EGX30 (the largest 30 companies in the Egyptian Stock Exchange)
These numbers are based on a study conducted by the EGX from 1998 – 2018, and Thndr extended it until 2021.
If I do invest - what will happen to my money?
Let’s imagine 4 people. Each one of them put aside EGP 1,000 every month, from 1998 to 2021 (for 24 years)
- Person A: Under the matress
- Person B: In a certificate of deposit
- Person C: Bought gold
- Person D: Invested in EGX30 (the largest 30 companies in the Egyptian Stock Exchange)
These numbers are based on a study conducted by the EGX from 1998 – 2018, and Thndr extended it until 2021.
"Investing in companies has proven to be the best avenue for generating wealth over the long run."
*Money invested on the long run is money you don’t need in the near future, giving you the power to decide when to withdraw it.
Guess the % of citizens that invest in companies
(hover to see answer)
50%
(hover to see answer)
0.5%
(tap to see answer)
50%
(tap to see answer)
0.5%
Let's bridge that gap
What to expect from this page
We’ll make you believe investing is right for you, show you how to start, help you put a plan in place.
Understanding the basics
Investing in companies
What's a stock?
Why does the stock market exist?
What does our stock market look like?
What's a stock?
Why does the stock market exist?
What does our stock market look like?
Understanding risk
High risk = higher rewards
Risk is your likelihood of getting the returns you expect.
Investing method 1: Lending
The borrower promises to pay you back at a later date + a fixed interest. It’s considered low risk because you’re promised to be payed back an exact amount (the level of risk depends on who the borrower is). Eg: Treasuries, CDs.
Investing method 2: Owning
When you own something, it’s value can go up or down depending on its performance. You’d look to buy something with the expectation that it would go up in value. This applies to purchasing a share of a company, gold, real estate, and even art.
Real life example
The EGX30 made double the returns of the 18% CD, from 20/03/2022 – 20/03/2023.
(lending the bank)
Here you’re promised 18%, no more and no less. Risk is low because you’re guaranteed those exact returns, but the returns are also low.
(owning part of a company)
Your returns depend on the companies’ performance. Risk is high because you can’t guarantee how much you’ll make, however there is no cap on how high your returns can be.
Let's make a plan
Step 1: Pay yourself first
You should be setting aside 10-20% of your income every month to save or invest. This is your foundation – the very first and most important habit you should build in order to start investing. This money is for ‘future-you’, you’ll thank yourself later.
Step 2: Protect your money from inflation
A good way to hedge against inflation is by investing in gold. Gold prices tend to move up during times of economic instability and inflation – when fear is up and the general sentiment is down.
15% of the money you set aside monthly for your savings & investments, should be invested in gold.
Step 2: Protect your money from inflation
A good way to hedge against inflation is by investing in gold. Gold prices tend to move up during times of economic instability and inflation – when fear is up and the general sentiment is down.
15% of the money you set aside monthly, should be invested in gold.
Step 3: Prepare yourself for a rainy day
Building a solutions fund is essential – this is money that you set aside, to cover your essential living expenses for 6-12 months, in case of emergencies or unexpected expenses.
You should save this money in a way that offers liquidity, and protects it from losing value.
You can do this by investing in fixed income mutual funds – they give you an almost guaranteed return, and the ability to withdraw your money daily/weekly.
You should save this money in a way that offers liquidity, and protects it from losing value.
You can do this by investing in fixed income mutual funds – they give you an almost guaranteed return, and the ability to withdraw your money daily/weekly.
Step 3: Prepare yourself for a rainy day
Building a solutions fund is essential – this is money that you set aside, to cover your essential living expenses for 6-12 months, in case of emergencies or unexpected expenses.
Step 4: Make your money make more money
One of the best avenues to grow your money and generate wealth is investing in companies, for the long term.
It’s best to do this with money that you know you wont need in the next 3-5 years. In order to grow your money with high returns, you’ll be exposed to high risk – a longer time horizon would help you mitigate that risk.
When you make returns that are higher than inflation, that means you’re growing your money – its increasing in value.
One of the best avenues to grow your money and generate wealth is investing in companies, for the long term.
It’s best to do this with money that you know you wont need in the next 3-5 years. In order to grow your money with high returns, you’ll be exposed to high risk – a longer time horizon would help you mitigate that risk.
When you make returns that are higher than inflation, that means you’re growing your money – its increasing in value.
How can I start investing in companies?
There are many different ways to invest in the stock market, depending on your objectives, and how much time you can dedicate towards investing. You can either invest:
Invest indirectly
Invest directly
Trust the market
Leave it to the pros
Invest like a pro
A) Invest indirectly
Trust the market
Leave it to the pros
B) Invest directly
Invest like a pro
Invest indirectly: Mutual funds
A mutual fund is where many people pool their money together, and an expert (aka an asset manager) is responsible for investing it on their behalf. Each mutual fund is different – some invest in companies, others invest in bonds or gold, etc.
Regardless of whether you invest EGP 10 or EGP 1M, all the money is pooled together, and the asset manager’s job is to put that money to work for you. Mutual funds are a great way to start investing in companies, since you delegate that task to a licensed professional.
A mutual fund is where many people pool their money together, and an expert (aka an asset manager) is responsible for investing it on their behalf. Each mutual fund is different – some invest in companies, others invest in bonds or gold, etc.
Regardless of whether you invest EGP 10 or EGP 1M, all the money is pooled together, and the asset manager’s job is to put that money to work for you. Mutual funds are a great way to start investing in companies, since you delegate that task to a licensed professional.
Trust the market: Passive funds
These funds invest in an index – like a leaderboard that tracks a list of companies. It captures the whole market, or a subset of the companies in the market. Basically, these funds don’t pick and choose which companies to invest in. They simply follow an index, and invest in the companies that fall within that list.
Eg: Misr Equity Fund (CI30). This fund invests in EGX30, the 30 largest and most traded companies in the EGX.
Trust the market: Passive funds
These funds invest in an index – like a leaderboard that tracks a list of companies. It captures the whole market, or a subset of the companies in the market. Basically, these funds don’t pick and choose which companies to invest in. They simply follow an index, and invest in the companies that fall within that list.
Eg: Misr Equity Fund (CI30). This fund invests in EGX30, the 30 largest and most traded companies in the EGX.
Leave it to the pros: Active funds
These mutual funds actively pick and choose the companies they invest in. They have a team of analysts continuously dedicated to selecting the best investment opportunities that are in line with the fund’s mandate and strategy.
Eg: Azimut Opportunity Fund (AZO)
Leave it to the pros: Active funds
These mutual funds actively pick and choose the companies they invest in. They have a team of analysts continuously dedicated to selecting the best investment opportunities that are in line with the fund’s mandate and strategy.
Eg: Azimut Opportunity Fund (AZO)
Invest directly: Choose companies like a pro
Identifying the right investment opportunities needs a lot of homework—research, understanding business models, and keeping up with the news.
We created Thndr Themes to help you choose
Themes are lists of companies we created to help you find investment opportunities. Each theme is based on certain criteria. For example: the ‘Inflation Resistant’ theme includes companies that are predicted to outperform others during high periods of inflation.
You can find these on the Thndr app, and use them to choose companies based on your own objectives.
(hover over each phone to read more)
EGP devaluation hedge
Undervalued stocks
Inflation resistant
Now that you've made it this far
We’d love to reach out to you for any upcoming courses, videos, or sessions you may like.
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Keep learning: Attend our webinar
Book your spot to attend a live session about the basics of investing, where we’ll also be answering your questions in a Q&A.
