Some friends have approached me and asked me, how to invest?
I will give a brief summary of what to take note and how to start.
Analysis yr objective:
Ppl invest for various reasons. The below 3 are the most common reasons:
1) To preserve cash
2) For regular income
3) To grow yr $$
Why do ppl want to preserve cash?
They work and strive hard to earn a regular income monthly. However, they lack the disclipline to save themselves. They tend to spend $$ with minimal savings. So fixed premium of insurances plans "force" them to save accordingly.
Some ppl fears lost of capital upon investing. They cannot afford to take any risk. Therefore they will place their savings in Fixed Deposit to earn that mere 2-3% interest yearly.
For regular income
Of course, ppl will like to have regular income on top of their existing monthly salaries. Therefore, they will invest in equities that pays dividends. By choosing these companies that pay out dividend, it can ensure that they have income coming in at all times of the year.
Also, their capital are subjected to market valuation.
Real Estate Investment Trust ( REITs ) and some other listed trusts may it appealing to investors. They generally generate higher returns than Fixed Deposits & some dividend yield company. The latest trust is Pacific Shipping Trust that offers a annual distribution of 9% base on a listed IPO pricing of US$0.45
Some Unit Trusts also offers fixed dividend payout. All these available investments instrument in the market, enable one to ride on the wave and enjoy regular income.
Growth
This seems to be the most common investment objectives. I got to say that investment objectives change throught the whole of yr life. When u are young, u tend to aim for growth investment, whereas as u grow older, u tend to preserve yr cash.
The equity market seems to be the most attractive tool for investing for growth. The disadvantage of this is that the person lack the knowledge to choose a company to invest. This hinders their investment objectives.
There are also other market instruments such as Property Investment, Energy Resources Investment, Options and Futures, Forex and many others.
One need to know, to grow $$, it is usually associated with risk.
Next in line will be How to invest?
Dont ever plunge into any brochure that promise HIGH returns or projected returns, chances are there are footnote to it.
Invest wisely
I will give a brief summary of what to take note and how to start.
Analysis yr objective:
Ppl invest for various reasons. The below 3 are the most common reasons:
1) To preserve cash
2) For regular income
3) To grow yr $$
Why do ppl want to preserve cash?
They work and strive hard to earn a regular income monthly. However, they lack the disclipline to save themselves. They tend to spend $$ with minimal savings. So fixed premium of insurances plans "force" them to save accordingly.
Some ppl fears lost of capital upon investing. They cannot afford to take any risk. Therefore they will place their savings in Fixed Deposit to earn that mere 2-3% interest yearly.
For regular income
Of course, ppl will like to have regular income on top of their existing monthly salaries. Therefore, they will invest in equities that pays dividends. By choosing these companies that pay out dividend, it can ensure that they have income coming in at all times of the year.
Also, their capital are subjected to market valuation.
Real Estate Investment Trust ( REITs ) and some other listed trusts may it appealing to investors. They generally generate higher returns than Fixed Deposits & some dividend yield company. The latest trust is Pacific Shipping Trust that offers a annual distribution of 9% base on a listed IPO pricing of US$0.45
Some Unit Trusts also offers fixed dividend payout. All these available investments instrument in the market, enable one to ride on the wave and enjoy regular income.
Growth
This seems to be the most common investment objectives. I got to say that investment objectives change throught the whole of yr life. When u are young, u tend to aim for growth investment, whereas as u grow older, u tend to preserve yr cash.
The equity market seems to be the most attractive tool for investing for growth. The disadvantage of this is that the person lack the knowledge to choose a company to invest. This hinders their investment objectives.
There are also other market instruments such as Property Investment, Energy Resources Investment, Options and Futures, Forex and many others.
One need to know, to grow $$, it is usually associated with risk.
Next in line will be How to invest?
Dont ever plunge into any brochure that promise HIGH returns or projected returns, chances are there are footnote to it.
Invest wisely
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