How To Pick The Right Investments For Your Portfolio?
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I would recommend investing in index funds for your portfolio. This is a type of mutual fund that owns and trades stocks (of different types, like tech stocks or healthcare stocks) that are found in an established market index (like the Dow Jones Industrial Average) or a custom index.
I would recommend investing in index funds for your portfolio. This is a type of mutual fund that owns and trades stocks (of different types, like tech stocks or healthcare stocks) that are found in an established market index (like the Dow Jones Industrial Average) or a custom index.
See lessWell, there are a lot of different types of investments out there. But for the purposes of this answer, I'm going to focus on your choices for stocks (since that's the type of investment that most people think about when they talk about investing).An index fund is a fund that tracks the performanceRead more
Well, there are a lot of different types of investments out there. But for the purposes of this answer, I’m going to focus on your choices for stocks (since that’s the type of investment that most people think about when they talk about investing).An index fund is a fund that tracks the performance of a market index like the S&P 500 or Dow Jones Industrial Average. There are many mutual funds and ETFs which track these indexes. These funds tend to be low-cost and offer diversification across an entire market segment. Index funds typically have lower than average fees because they don’t need lots of high-paid managers to pick stocks.A company will often issue shares (or stock) so it can make money by selling those shares to investors. When you buy shares in a company, you’re essentially buying part ownership in the company and becoming one of its shareholders. If you own shares in the company, you’ll receive some type of dividend payment or other income each year depending on how the company is performing or what type of stock you have (for example, if you own common stock as opposed to preferred stock). Let’s say that Company XYZ has issued 1 million shares with each share worth $1 a piece
See lessStocks: These are securities that represent a share of the ownership assets of an individual company. A person investing in stocks is called a shareholder. - Bonds: Bonds, also known as fixed income securities, offer investors a return from both capital appreciation and interest. - Mutual Funds: MutRead more
Stocks: These are securities that represent a share of the ownership assets of an individual company. A person investing in stocks is called a shareholder.
– Bonds: Bonds, also known as fixed income securities, offer investors a return from both capital appreciation and interest.
– Mutual Funds: Mutual funds pool money from many investors to purchase securities in an effort to diversify risk and generate investment returns for the participants.
– Exchange Traded Funds (ETFs): ETFs are similar to mutual funds, but they trade on exchanges like stocks do. ETFs typically track an index or a basket of securities rather than trying to beat the market.
See lessI think it's an individual decision. You need to know what your goal is, and what you're willing to risk. It's hard to rank investments, but if asked, I would say that stocks are safest - they don't pay a guaranteed return (like bonds) but they also don't have the same "guaranteed losses" as say, gaRead more
I think it’s an individual decision. You need to know what your goal is, and what you’re willing to risk.
It’s hard to rank investments, but if asked, I would say that stocks are safest – they don’t pay a guaranteed return (like bonds) but they also don’t have the same “guaranteed losses” as say, gambling. Investing in stocks is like buying shares of a company. You can buy fashion stocks, shoe stocks, and any other type of company stock.
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