| Despite popular belief, investing in the Stockmarket | | | | person, and greatly depends on your financial |
| does not have to involve high risk, extortionate | | | | circumstances and your understanding of the |
| commissions and fees, punitive restrictions, specialised | | | | Stockmarket. Your aim for any investment should be |
| knowledge or even much effort on your part. There | | | | to achieve a high growth with minimal investment risk |
| are many different ways to invest your hard earned | | | | to money. Ideally, you should be investing your |
| money to create wealth. Some routes involve higher | | | | money for the medium to long term. Short-term |
| risk than others. | | | | investing is inherently risky as it exposes you to |
| Depending on your objectives, your aim should be to | | | | fluctuations in the Stockmarket. |
| choose the lowest risk route for your investments. | | | | Even experienced investors and professionals lose |
| The ideal conditions to make your investments | | | | money speculating on the stock market. Some |
| worthwhile would depend on your individual | | | | people spend their entire professional lives studying |
| circumstances but there are general conditions that | | | | stocks and shares and still only get it right half of the |
| most people expect. Usually these are: | | | | time. |
| | | | For a person fairly inexperienced with the |
| 1. High return | | | | Stockmarket, investing directly into the market bears |
| 2. Minimal Risk | | | | a higher risk and can be potentially costly, with less |
| 3. Low Maintenance | | | | predictable outcomes. That is why investment |
| 4. Low Fees and Commissions | | | | advertising always includes the warning: "The value of |
| 5. Easy Access | | | | your investment can go down as well as up", and |
| 6. Maximum Flexibility | | | | "Past performance is not necessarily a guide to the |
| 7. Tax Efficiency | | | | future". |
| High Return | | | | The good news is that you do not have to be a |
| Although no one can guarantee you a high return on | | | | specialist in the market to benefit from high growth |
| your investment, when you invest over the long | | | | with minimal risk. |
| term and are not pressured to withdraw your money | | | | Low Maintenance |
| in the short-term, you are virtually protected from | | | | Investing through a stockbroker is one of the most |
| market corrections. Sudden downturns in the market | | | | expensive routes into the Stockmarket, especially if |
| are factors that affect the short-term investor. | | | | you are just starting. This is usually high maintenance |
| The ability to generate a significantly high return on | | | | investing, as you need to give instructions to the |
| your investment comes with the willingness to accept | | | | stockbroker when shares are being bought or sold, |
| a relatively low investment risk. A good investment | | | | and monitor the Stockmarket regularly. Also, your |
| should produce returns between ten to fifteen per | | | | investment should achieve a significantly higher return |
| cent over a number of years with a minimal risk to | | | | to justify the additional funds to pay the |
| your money. | | | | stockbrokers fees. |
| A reasonable target return to aim for is twelve | | | | Ideally, most people prefer investments that are |
| percent, which can mean that your investment can | | | | easy to set up and simple to maintain with little |
| fluctuate annually. But over a number of years you | | | | investment knowledge. It should take some effort to |
| can anticipate an average return over a number of | | | | initially set up and manage, but once set up you want |
| years of twelve percent. When the return on your | | | | to be able to focus on other important aspects of |
| investment dips at any time to seven percent at any | | | | your life, including generating more wealth in other |
| time that should not cause any concern providing the | | | | areas. |
| average return for the entire period is high. | | | | It is best to look for the safer routes into the |
| Minimal Risk | | | | Stockmarket depending on your financial |
| It is equally important to limit the investment risk to | | | | circumstances. Once you have more spare capital |
| your money. The subject of risk is relative to every | | | | you can choose to play the market then. |