Securities investment falls under the broader umbrella of bond and stock market investing. Apportionment of investments depends on the level of risk you are comfortable with. Investment in bonds has less risk of loss than stocks, but also less potential for gain, particularly during periods of inflation. On the flip side of the coin, stock market investing has more potential for high yields, but with no guarantee against loss, since stock prices are more volatile.
Invest a portion of your money in bonds and the balance money in stocks. If you are an older person, put less money in stocks and go for more of bonds. If you are younger, opt for more of stock market investing, especially in shares of companies with growth potential and proven track record.
Invest in shares of such companies who have proven track record
There are different sizes and categories of stocks. There are: large, mid and small caps. As a beginner, you should invest in large and mid cap companies. Once you gained enough experience, you should consider investing a small portion of your money in small caps. This is a risky kind of investing but if handled properly it can give large returns. Note that it needs expertise and nerves of steel.
You should not jump in something stock market investing; it needs a lot of time to learn the basics of stock market investing. You can start investing once you have gained some experience. It is suggested to invest small amounts of your money over a period of time rather than investing all the money at once.
Investing in bonds is easier compared to stocks. Your banker or broker can provide you a list of government bonds and highest rated corporate bonds to select. However, bond investing gives good returns only if you hold them for a longer time frame. Investing in shares, on the other hand, is suitable not only for those who want to invest for a short period but also for investors looking to long-term investments.
Don’t let other people dictate which shares you purchase. This advice is crucial for hot penny stocks, since these are widely deemed the riskiest investments. Thorough research into the company, its history, its suppliers, and all other potential factors is necessary if you must consider them. Invest with confidence, and enjoy yourself!
