Shares/Stock Tips to Invest in Stocks for regular Return

[raaman]

You can invest in index funds. Index funds are based on broad market indices and are available at an affordable price. On the other hand, individual stock picking does not guarantee stable returns over long periods as index tracking funds do. You can also make asset allocation. Choose an asset allocation that suits your risk tolerance levels and investment duration.

For the most part of a scheme, the higher the proportion of shares in a portfolio, the more risk it carries. Instead of trying to time the market, it is better you should consider a fixed amount of money invested at regular intervals. This will make it easier for you as an investor in the long-run to bear transaction charges.

 

[Suba]

Index funds are investment instruments that have low risk so they are popular with novice investors. Funds are managed to make returns in accordance with the reference or to get returns that are close to an index which generally uses stocks and bonds as a reference such as the Russell 2000 in America and the FTSE 100. in England. Apart from charging low fees, index funds also require a small amount of capital. Most investment managers build indexes only at the beginning and will then be influenced by market prices, besides that the potential returns are also limited.