Tips for First Time Investors
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Transcript of Tips for First Time Investors
TIPS FORFIRST TIMEINVESTORS
PENNINGTON CAPITAL
Brush Up on Financial Terms
If you are just getting into investing, any advice may read likegibberish. Be sure that you understand a broad array of
financial terms, such as mutual fund and expense ratio, beforeyou put your money anywhere.
Begin with Familiarity
If you are first entering the stock market, it is best to start byinvesting in companies you know. It helps to invest in
companies of which you are a regular patron, such as yourfavorite coffee brand or clothing store.
Diversify
You do not want to put all of your money into one company. Ifthe company does not do well, your shares will become
worthless, meaning you will lose all that money. Be sure toinvest in various companies, and build out your investment
portfolio.
Consider an Advisor
Investing for the first time can be scary, and there is no doubtyou will have a lot of questions. You can probably find an
investment advisor at your bank to answer said questions ifneed be.
Invest Through a Fund
For beginner investors, investing through a fund is the best wayto start. A collective fund is affordable and will allow an
investor to put his or her money into several different assets.
Buy a Fund Through a SupermarketPlatform
Buying a fund through a manager costs more money than it isworth. Fund supermarkets are a lot less expensive, will allow
you to review your assets whenever you like, and will only costyou a flat fee or a percentage of your investment.
Keep Your Investments Consistent
Feed your fund on a regular basis. This is the only way to havethe best chance to maximize your returns.
For more advice on investing for thefirst time, go to MoneyWise.