NEWS NOW

"Never Miss a Shot."

THINGS YOU SHOULD KNOW BEFORE INVESTING!

  • Understand Your Investment Goals:

Before starting any investment, one should understand their financial goal and how much and how long they want to invest. Share market usually have a higher return rate in a long term investment compared to a short term investment.

  • Analyze Your Risk Appetite:

Share market is often considered a high risk investment, therefore before getting into investing into share market one should analyze their investment goal and risk taking ability. One should always invest the surplus fund they have into share market and should always avoid borrowing money to do so, as stock market have potential risk.

  • Diversify or Not?

The best way to reduce risk in share market is diversification. One should diversify across sectors, choosing the best performing companies to maximize one's return. But one should avoid over diversifying their portfolio, which might hinder the growth of the portfolio as a whole.

  • Set Aside Your Emotions:

One should always set a true goal if they want to make money from stock market. While investing one should always keep all emotion, especially greed out of the picture. Never get too attached to a particular stock. It’s a perfect recipe for disaster.

  • Do Your Research:

During good times, stock market may look very promising and luring, buy it is suggested that one should always do their research before putting any money. Before taking any advice from any source, one should always do a proper due diligence before investing.

WHAT IS INVESTMENT?

 

 

  • Investing in individual stocks is a great way to start investing in stocks if you enjoy researching and reading about markets and companies. You don't have to research individual companies and buy and sell stocks on your own to become an investor. Investing in the stock market can be very lucrative, especially if you avoid some of the pitfalls that most new investors face when starting out.

  • Investing in stocks can be very expensive if you open and close positions frequently, especially if you have a small amount of money to invest. There is no guarantee that the company in which you have a stake will grow, so you may lose money by investing in the stock. The money you invest in stocks and bonds can help a company or government grow, earning you compound interest in the process.

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  • All of these indicate that you invest in a variety of stocks and bonds, diversifying your portfolio. Now imagine that you decide to use your $1,000 to buy shares in these five companies. In addition to buying individual stocks, you can also invest in index funds that track stock indices such as the S&P 500. More "traditional" online brokers like the two above allow you to invest in stocks, bonds, exchange-traded funds (ETFs), index funds, and mutual funds. 

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  • Also, do your research to learn about different types of investment vehicles, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs). A common investing mistake is to concentrate most of your money in one stock or class of stocks. If your brokerage account charges transaction fees, you may want to consider increasing your balance to buy stocks, especially individual stocks, if commissions are only a small percentage of your invested capital. Many brokers have been busy reducing or eliminating trading fees lately, ETFs offer index investing to anyone who can trade with a significant brokerage account, and all brokers need to make money from their clients in one way or another.

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  • For example, if an investor buys shares of a corporation's public company at $10 per share and the share price subsequently rises to $15 per share, the investor can earn a 50% return on their investment by selling the shares through their own actions. Thus, investors can sell their shares later on the stock market if they wish, or they can buy even more any time the shares are listed on the stock exchange.

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  • When you buy shares, you are entitled to a small portion of that company's capital, even dividends if the company's management chooses to pay them. It is a share held by a company that gives the owner, also known as a shareholder, the right to own a portion of the company's assets and a percentage of its profits if the shares pay dividends.

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    ALL ABOUT MUTUAL FUND
    AND STOCK PORTFOLIO!

     

    • A growing segment of the investment market, mutual funds, are professionally managed portfolios whose shares are sold to the public in much the same way as stocks.

     

    • A mutual fund is a company that collects money from many investors and invests money in securities such as stocks, bonds, and short-term debt. A mutual fund, because it raises money from many small investors, can invest in certain assets or take larger positions than a smaller investor could. One mutual fund with an investment portfolio and an investment advisor with an investment portfolio can offer investors more than one “class” of stocks of the same mutual fund. 

     

    • A mutual fund unit is an investment in many different stocks (or other securities), not just one holding. A stock is an investment in a company, and a mutual fund holds many investments in one fund -- maybe hundreds of shares. Balanced funds invest in a mix of asset classes, whether stocks, bonds, money market instruments or alternative investments. This is an example of a medium mutual fund type portfolio consisting of 65% stocks, 30% bonds, and 5% cash or money market funds.

    • Here is an example of a portfolio with 85% stocks and 15% bonds as a mutual fund type for an aggressive investor. A simple investment portfolio may contain only a few mutual funds, which may be a combination of actively managed funds, index funds, or ETFs. Investing in ETFs can offer the benefits of mutual funds without the additional cost of active management, while still offering the liquidity you would get by investing in individual stocks. Experts agree that once you have built a solid and well-diversified portfolio using investment vehicles such as mutual funds, you can set aside money to invest in stocks, but they should not exceed 5% of your investment portfolio.

    • Buying a mutual fund is ideal for investors who don't want to spend a lot of time researching and managing a portfolio of individual stocks -- a mutual fund is for you. Mutual funds allow you to pool your funds with other investors for instant diversification that protects your investments, and by investing in these funds, you can create wealth by leaving the management of the funds to professionals. All mutual funds have fees and expenses, some of which are paid directly (for example, sales and redemption fees), while others are paid out of the fund's assets (to pay for things like managing the fund's portfolio or marketing and distribution). When choosing between different classes of mutual fund stocks, keep in mind that your investment professional may receive higher (or lower) commissions or payouts for selling one class of shares than another.

     

    • A fixed income mutual fund is likely to generate higher returns than CDs and money market investments, but bond funds are not without risk. Income. More suitable for investors seeking higher returns, these funds typically invest in common stocks as well as government and corporate bonds.