When choosing investments, or where you invest money, there are numerous choices to consider given your income, age, your aversion or penchant for risk, knowledge of financial markets and finally, the investments themselves – what will you choose?
In addition to these choices, will you actively manage your investments yourself? Pay someone to oversee and make these for you (for a fee)?
When moving into the world of investments, it is usually helpful to rely on those who can help you direct your funds to safe, reliable instruments that have a proven track record for growth, profit and long-term success.
Investment Portfolio Management is key to successful investing – whether you manage your funds yourself or have others help make those choices, the goal is the same:
To minimize risk and maximize your return on those investments.
Depending on your interests for investing, there are choices for financial vehicles like stocks, mutual funds, dividend stocks, bonds and other specialty investments such as art, antiques or exotic cars and other higher cost investments like real estate.
Mutual funds, stocks and dividend-paying stocks are good choices for those just starting an investment portfolio – these investments are easy to buy, track and follow as the stocks or funds move up and down based on current economic trends.
Mutual funds are usually safe, provide steady growth and are stable because they are a mix of mutually-related, or industry-related stocks. There are international funds, technology-type funds, real estate-based funds, utility and energy-related funds and many more.
Individual stocks can be more risky, but also have potential for quicker and higher growth.
Dividend-paying stocks provide the added option for additional income through quarterly or yearly dividend payments based on company profits and the number of shares owned by the investor.
Managing your portfolio is as important as the types of investments you make, given that price, timing of the market, type of investment and time allowed for growth are all important elements to positive results. Managing each of these to minimize losses and fees and to maximize growth and profit are key to successful, meaningful investing.
A number of software tools are also available to help you manage your portfolio. A good application for tracking your dividends and investment portfolio is Stock Portfolio Organizer. This easy-to-use tool helps to manage stock purchases, track dividends, track costs for stock transactions and also provides transaction summaries with profit and loss information for each account.
Investing is an important part of planning for your financial success. Take time to learn about the many options available, what types of investments you feel safe with and how each investment type works for you given your own financial and personal circumstances.