Investment Articles

By now you probably know that it takes a lot of learning and experience to be a successful investor. For many this would probably also mean learning the hard way i.e. losing money in the stock market. There are some fundamentals in your learning journey that you need to be aware of. I will share with you five tips on how you can make your stock market investment more successful.

The beginning of the journey. What is your end goal? What do you wish to achieve (e.g. how much do you want to make in 5 years)? These are some of the basic framework that you need to keep in mind. How much do you need to set aside for rainy day? How much can you set aside to invest in stock? We are not yet getting into buying stock, but first understanding your financial journey, hopefully on your way to make enough money to an early retirement. If you talk to a financial consultant they will be able to give you a basic idea of your financial situation. If you are looking at better managing your expenses, so that you have more money left to invest, there are many smart phone applications that can do just that. They help you identify and track your major expenses all the way down to the little ones that often slip our radar, and we all know they can add up to a significant amount. Being able to better manage your expense will provide you with more cash to invest.

The analysis. Stock investment is a fine combination of science (the investment fundamentals) and art (qualitative analysis). There are many resources available for you to pick up on learning the fundamentals of stock investment. However, the science of investing itself is not a simple subject to pick up let alone be an expert at it. The market erratic behavior is also something that you cannot pick up from the text book. This leads to the second piece of the jigsaw puzzle, the art piece. It is how you combine the skill of stock market science with the art of qualitative analysis, example to define when you should sell the stock.

Know yourself, your friends and enemies. What is your risk appetite? Are you the adventurous risk adverse, or you belong to a careful investor who prefers to keep your risk to a minimal. Nobody knows you better then yourself. Start with a strategy that you feel comfortable with. Be aware that there are many ‘news’ making its round in the market. Do not be blindly lead into the ‘news’ or some call it gossip. Do your fundamental analyses before you jump into a decision.

Stay the course. Stock investment is a journey and it pays to stay the course, especially when you know that you have done your due diligent. You may not see enough actions (missing out on making quick money) in the short term, but you will tend to reap better benefits holding up in the longer term.

Education. The market is uncertain and changing all the time. Invest both time and money to upgrade your skill. Education will certainly pays off, however, remember one must learn to take action after upgrading your skill, so that you can see improvement to your life.

Adhering to above strategy requires a lot of self discipline and a strong will. You are more certain to reap the benefits in your stock market investment journey if you can do that.

Are you looking for more information on how to profit from the stock market? Visit http://www.stocktradingincome.com to have the secrets revealed and learn how others have benefited.

It takes a little bit of awareness to invest and prosper. According to research conducted by experts, it is due to lack of awareness among common people that investment activity is so low. However, few people would mind a little profit, so investment is a kind of activity, which anyone with a tiny bit of desire and devotion can try his/her hand in. There are two reasons why we cannot make up our minds and go for it: lack of awareness and overloaded work schedules. To help you get through, we recommend that you consult a financial planner and a little written material on the best investments for 2011 for you to go through.

What Are the Best Investment Options for 2011

Investing in Gold
Gold investments are still the safest of all existing investment alternatives today’s market can offer. The times of gold purchased in shops and stashed in the remotest corner of your home are long gone. With electronic payment systems readily available, you can do the trick without leaving your home. You can buy gold when gold prices lower, but you can just as well profit when they go up. It should be noted that gold prices tend to grow during feasts and special events, so you can take advantage of these moments.

Investing in Commodities
These have been the best investments for 2010 and are expected to be for 2011. This market is less predictable than gold market, because metal prices depend on the situation in the world market, which is in no way stable. Therefore, if you have decided to go this way, a piece of advice from an experienced and reputable broker is a good option. Go through the best investment firms you know who you think can shed some light on the situation.

Investment in Mutual Funds
These are among the best investments for 2011, since this option appears to be a way around the risks brought on by direct stock market investments. You get a chance to invest in both highly and lowly capitalized companies, so you can even out the risk. This strategy requires patience and strategic thinking, since it is the global economy that defiles the degree of risk and the tactics. Actually, what investors get from it is reputation and portfolio.

Investing in Fixed Deposits
This is the best investments for young people who plan and save for years to come. Banks attract customers by affordable interest rate levels and fixed percentage returns, which are much less volatile than those offered by other best long term investments.

Investing in Real Estate Property
It is not unlikely that real estate investments are the best investments for 2011. All you need is a little knack for negotiation and distinguishing between different types of real estate property. One more thing you need is a little patience, because, like any other kind of long-term investment, this one does not feed back immediately. Most probably, the best thing to consider is investing in rapidly growing and evolving towns and cities.

www.investmentsguide.biz

Saving money and investing it to earn something extra is a common process. Either an investment is made for buying a house or for doubling the money, both types of payments help to secure your future. If you are a regular news reader or news listener and follow the information provided on the business segment, you might be aware of the rising value of Iraqi dinars. Seeing such an increase in the Iraq’s currency value, the desire of the individuals to invest in the market gets stimulated. Dinar investment, however, is supposed to be the maximum money-making business for the individuals who wish to get profits. With such an enhancement in the investment market, Iraq keeps on forming new currencies, the most recent of which is the 10000 dinar.

With the dominance of dinar investment process, the current currency market of Iraq has received immense appreciation and has gained huge popularity in the financial sphere. But still some people doubt whether making an investment in this case would be a practical decision. Seeing the fraud financial cases in recent times, emergence of such a doubt in the minds of the investors is totally justifiable. If they invest somewhere, which would not give them any return, it will be useless. Thus, to play safe and make a wise financial decision, it is important for them to know more and more about the facts related to dinar investment in Iraq.

Around the year 2003, the value of Iraqi dinars had lowered down to a great extent. This was the time when the nation got invaded. But over a period of time, the political and economic status of the country has stabilized to such an extent that even the worst situations faced by the citizens have been brought under control. This has ultimately fostered the dinar investment market to a maximum limit. One more factor that needs a mention here is the enhanced security measures of Iraq, which has made it quite convenient and safe for the investors to go for dinar investment without any fear of getting trapped in fraudulent issues.

In addition to security, improved value of the Iraqi currency has also made the money market of the nation reliable. During its initial phase, the dinar investment market was limited to domestic investors, but gradually, it approached the foreign market as well and received affirmative response. The only fear of unsafe financial transaction compelled the foreign investors not to invest in the Iraqi dinar market, but the enhanced security situations have helped the outside investors to make profits in this currency market without any hesitation and fear.

Whether you invest in 10000 dinar in the currency market of Iraq or lower, you must make sure that you do it after considering some of the major aspects of the process. Before you opt for making dinar investment, analyze and examine how stable an Iraqi market is and the boundaries to which the business of such an investment extends. To know whether this option is right for you, go through the terms and conditions that are required to be followed and see if they all suit your requirements.

Sam Pattison is not only an investor on Iraqi dinar but also a freelance content writer. For information on dinar investment & 10000 dinar he recommends you to visit http://www.gidassociates.com/.

Yes, you, a women, can invest safely in the stock market. My daughter shivers at the thought but knows she must and so can you.

Too often ladies think the stock market is a man’s world or that it is too risky. The “too risky” attitude is actually what keeps most women out of the market. The only reason two of my three daughters have investments is because their workplace offers retirement accounts.

If you are like any of my daughters you look at investing in a similar way: your money is too precious to lose, buying new shoes is very important and for the kids always need new clothes. None of these viewpoints should keep you out of the investment world and in fact should be reasons to be an investor. Let’s look at these in a bit more detail:

Money is too precious – absolutely true, but investing doesn’t mean you have to take unnecessary risks. Speeding through a yellow light is taking an unnecessary risk. Investing can be safe if you follow key, conservative buying and selling rules like I have mentioned in other articles and use software that allows you to the option of setting it up to reflect your own personal nature. Putting money in an ordinary savings account today sets you up to lose. If inflation is running at 2.7%, today’s rate, and a typical savings account is paying 0.01% then you are automatically losing big time because your money sitting in that savings account will have less buying power tomorrow and especially in a year than if it were invested conservatively in a dividend paying stock, ETF, or mutual fund.

New Shoes and New Clothes – this answer to being able to afford to spend more may not make sense at first, but think about it a moment. If you have an investment plan like I have discussed in previous articles that generates money instead of losing it in a savings account, you can take those profits and buy more clothes and shoes.

If you are like my daughter who loves new clothes and can hardly avoid any sale at Macy’s or the Gap and shivers with the thought of putting her hard earned cash in the investment markets, then like she and I have discussed, you need to look at investing from your perspective and not from a typical man’s perspective.

Her perspective is that she wants the money to be there tomorrow. That is her first and foremost thought. Does she want it to grow and build? You bet, but she wants the original amount to be as rock solid as possible. The keys to investing from this perspective are simple:

• Use a reliable, proven, easy software program to make buy/sell recommendations
• Avoid stock tips
• Consider ETFs and mutual funds because they offer diversification and more safety than just putting all your dollar eggs in one stock basket
• Write down you concerns and objectives so you can tailor your investing to your personality and goals.

Author Raymond Dominick is the designer of Dynamic Investor Pro investment software for stocks, ETFs and mutual funds. He has been investing in the markets since his teenage years. An experienced business manager and journalist, he has been a registered investment advisor representative, also a professional photographer who loves escaping to the wonders of Glacier National Park in Montana.
View his software at: http://www.dynamicinvestorpro.com

Whether investing money to the tune of $1000, $10,000 or much more, there are basic investing mistakes that most beginners make. These mistakes can be very costly, so let’s look at investing $10,000 and how beginners can do things right.

When investing money, beginners must realize that there is no such thing as a perfect investment. You can’t have it all in any one single investment. If you are investing $10,000 you must have your own personal financial objectives in mind. What are your priorities from this list: high liquidity, safety, growth, higher income, tax advantages? Be honest with yourself and your financial planner if you have one. Investing money is all about tradeoffs, and what level of risk you are willing to accept.

Of all the investing mistakes beginners make, not knowing and sticking with your financial objectives is the worst. If you are investing $10,000, do you need instant access to your money (high liquidity) in case you have a financial emergency? If so you need a safe investment like a money market fund; and you give up growth, higher income and tax advantages. Otherwise you could be faced with fees and penalties, or market losses if you need to cash in at the wrong time. For example, you don’t want to be forced to liquidate a $10,000 stock investment that’s fallen to $5000 just to make your mortgage payments.

Once you have your objectives in mind get a handle on the investment options that fit your needs before you start investing money. For example, if you are working for a living and investing for retirement, you need at tax break and should consider an IRA or your 401k plan at work if you have access to one. If you are investing $10,000 a year you might want to put half in such a plan and the other half someplace you can get to it without penalties. Lack of liquidity one of the most common investing mistakes beginners make.

Avoid excessive costs and fees. Investing money in stock funds and bond funds to get growth and income not need cost you an arm and a leg. Investing $10,000 in the wrong mutual funds could cost you $500 off the top when you invest and as much as $200 or more EACH YEAR for expenses and other fees. This is one of those investing mistakes beginners make that can be costly over time. For example, people invest in bonds to earn higher income, and over the long term bonds and bond funds have returned about 6% a year. You can’t afford to give a third or half of that back in charges and fees. Go with no-load index funds. There are no sales charges to invest, and investing $10,000 can cost less than $50 a year, period.

Investing money successfully need not be a part time job, but it does require a little ongoing effort on the investor’s part. Ignoring the status of their investments is a common investing mistake beginners and many other investors make. Look at your quarterly statements when you get them. Are there charges and fees you don’t understand… are you losing money? You can not correct a problem if you don’t know it exists.

You can avoid the common investing mistakes beginners make and put yourself in a better financial position. Know your financial objectives and get a handle on your investment options. Keep your cost of investing low and stay on top of your investments. Once you have cash reserves set aside for liquidity, you can start investing money one step ahead of the crowd.

Author James Leitz teaches investment basics, stocks, bonds, mutual funds and how to invest in his investing guide for beginners called INVEST INFORMED. Put Jim’s 40 years of investing experience to work for you and get up to speed at http://www.investinformed.com. Learn how to invest.

You have likely heard the old saying, ‘Don’t put all your eggs in one basket.’ This summarizes the entire philosophy of a diversified investment portfolio. The idea is to spread out the risk. You do not want to have 100% of your investment capital riding on a single investment. For example, you would not want to have your entire investment portfolio allocated to commodities. This might represent very slow growth and/or improper risk allocation. Likewise, you would not invest 100% of your capital into penny stocks that may go up and down in value just as quickly as the wind blows. Maintaining a diversified investment account will allow you to reap the benefits of multiple investments while at the same time protecting yourself from a single catastrophic loss if one of the investments happens to tumble.

Stock Market Investing Is A Fundamental Element Of A Diversified Portfolio

The United States stock market has increased in value, on average, about 11% since the 1920’s. This includes the time of the Great Depression, the stock market dive of 1987 and the dot-com crash of more modern times. Over time, the stock market increases in value. Those who invest in the stock market are in a position to benefit from this slow increase in value. Those who invest for the long-term are most able to capitalize on the growth of the stock market. It is a fundamentally sound investment when done properly. There are number of ways to invest in the stock market including mutual funds, spider funds, and stock indexes, to name just at few of the methods. Individual stock purchases can also be profitable if done correctly. As always, talk with an investment adviser about your options and how stock investment fits into your overall game plan.

Penny Stock

A more specific type of stock market investing revolves around penny stocks. These are stocks that have a small price tag and potentially a significant return. However, the potential also exists for significant losses if prices go against you. For this reason, penny stocks are generally considered to be a risky investment and are not suitable for all investors. The appeal of the penny stock is to ‘find the next Walmart.’ What this means is that the investor (or perhaps in this case the speculator) is looking to buy a company stock for a very small amount of money (perhaps just a few pennies) in the hopes that it may soar to be worth several dollars per share in the future. This is generally the fundamental game plan with a penny stock.

Mutual Funds Investing

Mutual fund investing is another one of the ways to invest in the stock market. Mutual fund exist for the purpose of spreading out risk. By their very nature they are designed to help increase overall portfolio returns while at the same time reducing overall risk to investment capital. The way this is achieved is to spread out the mutual funds overall portfolio into a number of different stocks. This diversification can help with risk reduction. People enjoy investing mutual funds because it allows them the opportunity to invest in a number of different companies all at the same time. It also allows for their money to be managed by a skilled professionals so that as individuals they do not have to do the decision making themselves. For these reasons it is easy to see why mutual funds have a very broad appeal and are one of the most popular investment opportunities available. Bear in mind that just because a mutual fund has done well in the past does not necessarily mean that they will continue to do well in the future. This is one of the challenges common to mutual funds.

Value Investing

Value investing is generally a broad definition of investing done by purchasing companies that have fundamentally sound value. In other words, a company that displays consistent earnings and offers a good value for the price of the shares offered would represent a company fitting into the category of a value investment. A number of fundamental investors organize their portfolios according to a value investing approach. Buying stocks that are of good value can represent a fundamentally sound investment strategy.

Bonds Investing

When you talk about bonds investing you generally think of safe and secure investments, and for good reason. Bonds generally represent one of the safest investments available. A bond is something like a promissory note. A company or government might issue a bond in order to raise funds for a particular project. When raising the funds, the entity will offer a bond containing a specific investment return which is to be repaid to the investor according to the term and length of the bond. It is something like lending money to a company and then giving you a specific return on your money. This can represent one of the safest forms of investments and likewise is popular for many people.

Commodities Investing

Commodities can represent one of the more confusing types of options available for investors. It is best to consult with skilled professionals and financial advisers when it comes to the topics of commodities. Commodities can be viewed as both a high risk opportunity as well as a safe and secure opportunity for financial returns. It depends on the approach first and foremost. Many investors view commodities as a hedge against their other investments-designed to provide a counter-cyclical approach to investing that can help diversify overall risk and returns.

Consult With An Advisor

Consulting with the skilled investment adviser is one of the best options that any investor can take before allocating their money. It is a good idea to diversify, but if the diversification is done without a systematic game plan than the results can be less than spectacular. A solid game plan, rolled out over a long period of time can be one of the best approach is to systematic, long-term investing that will yield fruitful financial returns. Long-term investing should be the goal of almost every investor looking to double and triple their capital in the years ahead. Begin first by talking with your investment adviser about a systematic game plan for your investment blueprint.

For more great tips and expert advice on investing for a bright and secure future, please visit us at http://www.elementaryinvesting.com.

Investing is such a complicated field that there are literally tens of thousands of books written on the subject. Investing can be quite difficult, depending on the strategy, though it and can also be simple and straightforward if done properly. One of the best pieces of investment advice ever given is to diversify your portfolio into several different investment vehicles. This can help you spread out the risk and achieve a steady return on your investment capital. This is the goal of most investors. This type of investing can be categorized broadly as value investing and with a diversified investment strategy that holds a goal of long term positive returns.

Value Investing
On the whole, value investing is generally defined as investing that focuses on buying investments that have good value. This is a fundamentally safe and secure type of investment strategy. The goal is for steady appreciation and consistent yields on capital invested. Value investing is a fundamental and lies at the base of a solid financial investment plan. Buying investments because they are a good value is a mark of a solid investment plan. If you buy companies because they are good value, then chances are you will be in a position to enjoy capital appreciation in the years to come.

Stock Market Investing
Stock market investing is one of the fundamentals of value investing. By diversifying investments into the stock market it is possible to spread out investment funds into a wide variety of different companies and their stocks. It is certainly very difficult to choose specific stocks that are going to go up in value immensely in the years to come. The Walmart-like stocks are few and far between and taking them at their outset is almost impossible. This certainly does not mean that you should not try. Buying fundamentally sound stock market investments can be a goal and ticket to a fruitful financial future ahead.

Penny Stock Investments
Penny stocks are those that bear their own name. These stocks are often valued very lowly and the costs are often quite low-often times ranging from a few pennies per share up to a couple dollars per share at the most. Some investors believe that there is great potential return in penny stock investments because you can buy for such a low cost a large amount of shares and if there is any appreciation in value this year value will likewise increase. An increase in the share value will yield an increase in the investment return as well.

Bonds Investing
Bonds are another core element of a diversified investment strategy. Bonds typically have slow and steady growth patterns and consistent yields year after year. This makes them the ideal investment for slow and steady capital appreciation. There are several different types of bonds available ranging from government-backed bonds to higher risk corporate bonds. Bonds remain one of the best ways of diversifying a portfolio with safe and secure investment returns. Talk with an investment adviser about the different kinds of bond ratings and how the different types of bonds will play an important part in your overall investment portfolio.

Mutual Funds Investing
Mutual funds are yet another way of diversifying investment risk and return. Some mutual funds specialize in high risk/high yield type investments, while others mirror segments of the stock market (as in Spider Funds, which buy the exact companies that appear on certain stock indices). Mutual funds are run by a board of directors and a management team in most cases. These individuals have the responsibility of making the investment choices for the entire fund.

Mutual funds are traditionally one of the most popular investments options and routes to take. Mutual funds are easier to become involved with than almost any other investment. They are often times the starting place for investors who are looking to have the potential for return while also curving the risks in spreading out the potential downside. One of the challenges with mutual funds, however, is the fact that there are so many and they can be difficult to choose between them. Out of thousands of different mutual funds, finding one that meets your investment requirements can be tricky. It also should be noted that just because a mutual fund has done well in the past that does not mean that it will continue to do well in the future. Very few mutual funds maintain a steady track record over time.

Commodities Investing
Commodities are another option for a diversified investment portfolio. Commodities represent certain items like corn, oil, gold, silver, and other such natural items classified as commodities. Commodities can often be used as a ‘hedge’ investment and have a safe and secure track record. Investing in commodities should be done with the help of an experienced investment adviser only or with much experience under your belt. They are not typical investments and should not be viewed as ones that are as easy to invest in as bonds or mutual funds. Typically, commodities investments can be used as a counter-trend type of investment, or in other words, as a protection against loss when other types of investments seem to be falling. Commodities will typically hold their value contrary to the stock market as a whole.

All of these different types of investment options should be discussed with a qualified investment adviser or broker. To venture into these investments on your own can be dangerous. It should be mentioned that with any investment there is the potential for loss. Anytime you have the potential for substantial gain, likewise you have the potential for substantial loss. Some of these investments are more secure than others. You should discuss your options and your long-term strategy with your investment adviser to determine the best plan moving forward. You’ll want to create a diversified plan that creates a steady return while minimizing risks.

For more great tips and expert advice on investing for a bright and secure future, please visit us at http://www.elementaryinvesting.com

When the student is ready, the teacher will be available. This is a good disposition to learning about investment.

Yes – on investment, so much noise and so much confusion – where do one start from?

Good question, every good endeavor must start with oneself. Go out and take stock of them all, great investors that I have known were all men of controlled temperament with mastery over their own emotion and personality.

Are they the best of fellow out there?

Absolutely not, but when they go investing they drill themselves to comply with the rule of the game – investment has rule and it is the ability to abide by this that makes you profits or losses. This therefore calls that one who wants to succeed in making investments would require tough discipline on himself; which is not common with ordinary folks out there.

Investment isn’t another world it is part of life and it is life in itself.

Whatever outcome you have from investment is only a reflection of your personality. Think of staying power, discipline, self-confidence, greed and emotion, they are traits which are more profound and important than investment strategies themselves. The man who masters himself will be able to master any other thing in nature which he put his mind to. Rule your world by firstly having rule over yourself.

Investment is not an anointed area for a few personalities – I believe the market respects no single person. True investment market cannot be manipulated or controlled by one man – but like the ocean as large as it is, each and everyone can have a part to him. The bottom line is that if you can discipline your emotion, you can have a part of the wild world of investment to yourself; and nobody is expected to have all. When one man has it all, it is no longer an investment, it becomes a monopoly.

This implies that those who are making progress are those who abide by the needed rule of the game through controlled temperament. The hardest thing for man to do is to subdue his own self. I have seen people who failed in one thing, what you see them do next without taking stock is rush out to find another venture until they have gone round and round doing so many things. Often their failure is not as a result of the non-yielding of the ventures they tried, the problem usually lies in their poor personality that refuse to learn what it takes.

Failure in life is often as a result of a failed personality. In investment, you will likewise not be spared the rod for negligence of personality. Sit up, find out where you have failed and objectively identify and take care of such. Ability to learn from failure is one good trait of the successful ones.

You don’t need to perfect your personality before making a venture into investment? Personality is perfected in growth; perfection is growth, and there is no other definition. And it is in doing that you get perfected.

Remember that the law of recognition comes before possession. It is easy to deal with an enemy you know than those you don’t know. Be aware of your personal tendency – such as being fearful, greedy and impatient. Often in your investment decision, this three personality trait will play crucial roles in what decision you make, but by recognition and discipline, couple with experience and time, you will learn to master them for profit.

Find out whether you are overly dependent on others for decision or not.

Finally, put it firmly in your mind that the winning investors are those who take charge, they are people with good self-esteem; they are positive and confident personalities. Lack of confidence leads to the death of investment, meaning that the life wire of profitable investment is confidence; and you should not be found in the market when your confidence is down. Take charge and you will be writing your name on the winning side.

ADEWALE ADEWUMI is an investment consultant with remarkable years of experience in the investment world. Check on two of his websites for help
http://fxtrendsystem.com
http://fxcapitalinvestors.com

An individual’s ability to make smart decisions concerning investments can result in fortune. The timing of such decisions is a key to financial success. This global world has made necessary for investors to win big or reap good profits even with one good decision. Those who have become so rich are largely not as a result of hard work only but also smart decisions. Below are some of the tips you could master to help you make smart investment decisions.

First, you may need to carry out due diligence about the industry you have decided to invest in. You have to know the in and out of the industries. You may need to find out if those players in there are making any profit at all and whether the industries accept new entrants easily. You may need to know the type of competition in that industry. It will also be helpful to gather competitor intelligence information ethically. These will get you to know if the industry is worth investing in.

Also, vital to sound investment decision is the idea of diversification where funds for investments are spread among several securities. The goal here is that you may not want to ‘put all your eggs in one basket’. In the event of a collapse of the only company you have put all your funds in, you risk losing everything. Hence the smartest way is to divide your funds among many companies or different commodities such that if one is not doing well, others may do well. It is rear to find about five carefully selected securities in a portfolio all doing badly at the same time.

Besides, you may need to know where to invest your funds. Common among commodities to invest in are stock funds, mutual funds, and bond funds. Stock funds are the most unstable in terms of returns but also very lucrative especially when you have a lot of money to invest and also invest wisely. For wise investment, I mean investing in more secure stocks which can guarantee you constant returns. One of the best secure stock investments is the S&P 500 Index fund. By investing in this fund, you have collectively invested in over 500 of the best companies in the world together. Your profit will largely move with the performance of the index and hence you can be assured of profit even in a highly volatile stock environment.

Bond funds are also another smart commodity to invest in. Bonds are also risky in the sense that they are affected by interest rate movements. When interest rate rises, bond prices will also fall. The smartest way around this is to invest in medium term bonds to beat the fall in bond prices in the long-term. Bond interest rates are fixed meaning that you can be certain of returns in the very near future. The real estate market together with some carefully selected investments in the mining, oil and gas sectors will make another smart investment move.

Smart decisions are essential for success in every endeavour. This is even more critical when it comes to investments. If you would heed to the tips above, obtaining good returns from your investments will be a constant feature.

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The author Isaac Akohene-Asiedu is a lecturer in Finance and Statistics and a microfinance prodigy. He is a practical investment adviser and an entrepreneur with many years of investment experience. He likes to share investment tips with people who want to earn financial freedom.

The advantages to having a balanced investment portfolio will ultimately mean having a healthy selection which will serve you well into the future. Many investors take an ad hoc approach to their investing — that is if there’s been any planning at all. It is important to take a more structured approach and to plan.

Many consider having a portfolio means having a savings account, a retirement account and a bank account. Afraid of taking on risk they stick to the sorts of investment that will never keep up with inflation. While you may want your savings to be safe you also need it to grow. The challenge of course is that the safer your investments are the less likely you will make the money you require to grow your funds.

This is where balanced investing comes into its own. You will have heard that you should spread your investments and not put them all in ‘one basket’. The reason for this is that each type of investment asset class will react differently to different market situations. If you have your investment s in one area only you are subject to the declines in that market.

Take for example housing. The recession and bad lending practices affected home owners and business owners alike, resulting in the value of their properties falling. An investment only in property would mean that you had little else to boost your value. Property markets are notoriously illiquid investments and if you needed cash you would need to sell at a loss.

Then let’s look at the share market (equities). Investing in one company would mean you would lose all of your money if the company were to fail. Investing in a few different company shares would provide a little more security against a decline in the markets.

The best way to get that reduction in risk is to spread your investments and diversify. There are four main categories of investment and these are known as asset classes. These categories are cash, fixed interest, property and shares.

Cash gives the lowest return but is arguably the safest asset class. It is good to have cash for liquidity but its risk is that it will not keep up with inflation. In some cycles of the investment market interest rates have been attractive and have given better returns than the traditional riskier shares…but over time they will lose money by not providing growth. Cash is good for your short-term goals.

Fixed interest is next in line on the risk scale.Fixed interest assets are generally government bonds, issued by governments the world over to raise cash for public spending. Companies also issue bonds to raise capital. Government bonds tend to be seen as safe as they are guaranteed to pay back the funds borrowed on due date. However, this Sovereign debt is not as safe as it once was with many countries striking problems during the recession. Corporate bonds tend to provide higher returns than Government bond and are more secure than shares in a company.

Until recently investors tended to think of property as ’safe as houses’ and that it always went up in value. This of course is not always the case as we have seen in recent times. Property is harder to diversify in as a lot more cash is required for their purchase. Borrowing magnifies the risk. There are ways of investing in property through managed funds. Property is a long-term investment and the returns from property are growth in value or rent from your rental investments, which is income.

Shares (or equities) are the riskiest of the four assets classes and it is important to invest in a range of companies and not just the one. Shares are growth investments but returns can be made up of dividends also.

A balanced portfolio is a mix of these assets in a combination that is roughly 50% growth and 50% income. It is a portfolio for those who are adverse to risk but require growth in their investments. By combining these assets your return is the average of the highs and lows, smoothing out the volatility of the market.

Have a healthy portfolio by adopting a balanced approach to your investments. Ask your adviser or financial planner about the right investments for you.

Lyn Bell has been in the finance industry for more than 30 years and is a Certified Financial Planner. She has helped many clients achieve their financial goals. Sign up to get Lyn’s free newsletter SoundFinance News and receive a free gift.

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