How Can You Beat Average Market Returns With Your Portfolio?
When the market is in an uptrend, sitting
on large amount of cash available to be traded can seriously limit your
investment returns. One should always keep in mind the percentage manor. If
the market is going slow and is on the down side then one should follow 50-50
approach where one can have 50 % invested in the market through various
instruments and remaining available as cash reserve to average out on
considerable crashes. This is a good approach for investors as this way they
can curtail the high amount of risks involved.
How much should be invested in Mutual Fund?
Mutual fund investments can be a little tricky to understand, as sometimes
the fees related to these fund can really get little too heavy on returns to
give its true value. Having too much mutual funds in one's portfolio can
really limit your success potential. One should maintain a fine balance while
choosing a Mutual fund preferably from top 25 mutual funds.
The international Exposure Present in Your Portfolio
This does vary from person to person as everyone does not fall into same
risk and exposure category. Investing in emerging equities can provide much
higher returns, even the dividends are way too high, but a conservative
investor should stick to domestic stock market, as international risks are
How much should you diversify?
Over diversification can eat into your profit but it's surely a safer
approach. As many analysts repeatedly warn investors to not to put more eggs
in fewer baskets, so diversification is a necessary component of investment
portfolio, no matter if it limits the returns.
Comparison with the S&P 500
The easiest way to judge one's investment success is to compare it with S &
P 500 Market index. One should always look at S & P 500 Market index as
percentage basis and not as a whole basis. One can go to any of the free sites
for investment consulting and can pull up a chart of the S & P 500.
Role of Your Broker
The broker should always supply the investor with everything from the tools
to the timely stock quotes. The broker should always rank high in customer
support and should always be keen in your investment success.
Options Investing 102
Direction of the market
An insight on the direction where the market is heading is really a great
advantage for an investor. This ability comes with experience and one really
has to do lot of research about the movement in the stock market. One can get
an idea about this by following any of the major indexes like S & P 500 or
Setting Investment Goals
Setting goals right at the start can really play important role in
achieving better returns. One should do some serious research and set quarter
based targets for achieving what one wants to achieve as his/her goal.