Showing posts with label Equities. Show all posts
Showing posts with label Equities. Show all posts

Thursday, January 30, 2014

Should you Invest in Property, Gold or Stocks this 2014

Once all the new year celebrations are done with, it is time to deal with the more intricate and complex things that are bound to shape the rest of your 2014, at least in financial terms. Investing has always been an important aspect for every salaried man as it increases their chances at a better life and a slightly higher income. However, these investments always tag along with their own set of risks, which also need to be addressed so as to not lose all your savings in the same. Therefore, before you even consider investing, you need to measure the pros and cons of the same. Ideally, there are three markets which seem intensely attractive to an investor and can help give you good returns depending on the situation. However, the question is, where should you invest? Given below is a detailed account of what you can possibly expect and where you are likely to achieve more positive results.

1.) Real estate:

Essentially, price and the corresponding affordability have a huge impact on the decisions that you make. In any ideal situation, the gap between price and affordability should be lower. However, with the year 2013 rounding up and even after the beginning of 2014, the real estate market has not shown any real improvement. The gap between these two fators continues to widen, with the property rates shooting up every passing day and the corresponding affordability staying constant or sinking down due to the inability of employers to raise income. Therefore, the negative growth in income and the continuous growth in property rates make it extremely volatile for you to invest in real estate. It is being predicted that this scenario is likely to change with the advent of General Elections; however, it is very unlikely that this will have any effect on the benefits that you may enjoy from investing in real estate this 2014.

2.) Stock market:

In Jan 2008, Sensex achieved a commendable feat of reaching 21000 level points. But instead of things improving from that point on, there has been a nearly 50% downfall. Therefore, many people are flustered as to whether or not this is the right area for invetsing in 2014.

Ideally, predicting how a stock market will do is not in the hands of people. Even the best investor or employee may be unable to answer that for you. The fact if the stock market will climb at least 24000 points and upwards remains a mystery. However, the sustainable bull market plays the deciding role for this and since the two factors that define this phenomenon– inflation and interest rates are not exactly in the country’s favour, it may be difficult to predict.

3.) Gold:

Gold has not just been the jewellery of choice but also a popular choice among investors. However, with the prices of gold falling to an all time low, with nearly 40% the past year, this trend continues to see the lower grounds even in 2014 and therefore, would not be very advisable. Not much progress in prices was made past 2013, and the situation is likely to remain the same or fall even further.

4.) So, where should you invest?

Ideally, it would be most rewarding to have your investments in products that are also known as debt products.This includes a vast range of fixed deposits and bonds. It is important that the places in which you invest will give you a redeemable offer and help save money at the very same time. As a rule of thumb, investing in Mutual funds, especially the short term bond funds will do your finances and savings a world of good this 2014.

Author’s bio:
Cher Keel is a finance analyst and works with a well known financial company. She enjoys learning nd reading extensively on investments. She is also a guest lecturer at a renowned finance institute and also writes a finance blog giving out investment advice.

Wednesday, November 6, 2013

Investment Basics: Six Steps To Successful Long-Term investment

In order to successfully invest for a child’s educational costs and your own retirement, you must start now and think long-term. Investing successfully over the a longer period of time is not as complex as you might think. Keep these six steps in mind to help you make wise financial decision:

Don’t Time The Market

Day trading is something that became incredibly popular during the tech boom. Large amounts of cash combined with small upticks in the market, and frequent trades were able to create full time incomes for many investors. When it comes to long term investing however, less is more. There is no need to sit in front of your computer all day to be successful. Research an investment, select it, and stay with it.

Past Performance

Though past performance does not guarantee future success or failure, it can be a strong indicator, and should be thoroughly reviewed. Stocks and mutual funds are easy to track performance with earnings and rates of return. Many mutual funds mix stocks and bonds in order to diversify. There are plenty of experts with bond market research and investments tips that you can learn from to avoid past mistakes and understand the market better.

Don’t Panic

Remember that you are a long-term investor. Short term market fluctuations and sell offs are nothing to be feared. These should be viewed merely as buying opportunities where your cost basis can be greatly reduced by buying low to later sell high. If you panic and try to sell when the market drops just a little, you will end up losing much more. Again, think long-term, because there will be small dips and spikes in every stock.


Even excluding short term market fluctuations, as a wise investor, you should still review your portfolio periodically to ensure that your portfolio performance is on the right track. This may be an opportunity to invest more in a particular fund that is outperforming others. Keep in mind that diversification is still critical to ensure success.

Never Chase a Trade

You have completed your research and resolve to purchase a stock, bond, or mutual fund at a strike price. If something unexpected happens that no longer makes the trade an attractive one, don’t chase the trade, move on. Although it is good to invest long-term, that doesn't mean you should chase after an investment that is clearly not going to have a positive benefit for you in the long run.

Cheap is Not Always Good

Penny stocks may seem like a good idea because they allow you to execute large purchase orders with only a small cash investment. As with any investment, you must factor in risk. Penny stocks are so cheap because they are extremely risky. Though some risk is acceptable in the successful long term portfolio for diversification, penny stocks are too volatile, and should not be considered.

Investing for education or retirement can by simple when you take these tips into consideration. Understanding to to successfully invest long-term is essential to help you meet your financial goals. Remember these tips when investing, and you will be able to gain the return on your money that will make a significant difference for you financially.

Friday, September 6, 2013

The 5 Smartest Investments To Make After Retirement

When it comes to investing, the level of risk you can take and your age have somewhat of an inverse correlation. As your age goes up, you want to take on less risk. This never rings more true than after you retire. At this point in life, you're living off of the wealth you've accumulated while still trying to generate more through investments. It's important to be savvy, and that's why we've come up with the five smartest investments for after retirement. 

Dividend-paying stocks are a beacon of safety. These are typically offered by companies that have strong roots in the economy and aren't likely to collapse in a hurry. The lack of expected rise in value is a big part of why these companies pay dividends, but it's great to have that security and still see a return just for holding stock. You don't necessarily want these to be a large part of your portfolio, but having a few is a great idea. 

Foreign assets are also a great pick. In the long run, the shift to a global economy means that more assets are overseas than ever. As the US economy and the dollar start to see parity with the output of other nations, the relative value of those foreign assets is going to see an unprecedented jump. By holding a small amount of foreign assets and increasing that share as the market appreciates, you'll have security. 

Companies that fill a need are also a wise sector to invest in. An obvious pick here is medical companies, but there are other companies that also offer products that will always be needed. Take home security, for instance. Most people live alone, so home security will always be in demand and is unlikely to be replaced in the market. The best alarm services to monitor are the ones that have an established customer base.
Fixed-rate assets are another sound investment. Think securities and fixed-rate bonds. Anything that pays a guaranteed amount of money is a strong pick in a retirement portfolio. 

Boom industries round out the list, although this one requires prudence. Getting in front of the technology boom of the last several years would have been a wise position, just as getting a jump on investing in healthcare would be wise now. 
Investing after retirement doesn't have to be tricky—just stick to the same goals you've always had, and always consult with a financial professional.

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