Share market investment strategies: General planning tips
Never buy shares on tips or rumours alone. Try and understand the type of business the company is involved in before you invest.
Remember, the higher the potential return, the greater the risk. Real rates of return (i.e. adjusted for tax and inflation) average around 4 percent to 5 percent per annum over the longer term (seven to ten years). Don't be misled by apparently impressive historical investment statistics: past performance is no indication of things to come.
Keep your portfolio manageable by concentrating on a relatively small number of quality investments. To do this, avoid acquiring lots of speculative stocks.
Check the liquidity of each investment (how long it takes for your money to be returned if you decide to cash out).
Understand all transaction cost, including early withdrawal penalties and tax implications.
Always maintain an adequate cash reserve to cover unexpected expenditures, emergencies and new investment opportunities.
To minimise risk and maximise growth, you should assess how much risk you are prepared to take and spread your investments across several investment types and different companies.
http://www.asx.com.au/courses/shares/course_09/index.html?shares_course_09
Never buy shares on tips or rumours alone. Try and understand the type of business the company is involved in before you invest.
Remember, the higher the potential return, the greater the risk. Real rates of return (i.e. adjusted for tax and inflation) average around 4 percent to 5 percent per annum over the longer term (seven to ten years). Don't be misled by apparently impressive historical investment statistics: past performance is no indication of things to come.
Keep your portfolio manageable by concentrating on a relatively small number of quality investments. To do this, avoid acquiring lots of speculative stocks.
Check the liquidity of each investment (how long it takes for your money to be returned if you decide to cash out).
Understand all transaction cost, including early withdrawal penalties and tax implications.
Always maintain an adequate cash reserve to cover unexpected expenditures, emergencies and new investment opportunities.
To minimise risk and maximise growth, you should assess how much risk you are prepared to take and spread your investments across several investment types and different companies.
http://www.asx.com.au/courses/shares/course_09/index.html?shares_course_09
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