Defensive stocks for the more cautious

If your investment horizon is several years, it is perhaps not so important whether you invest in cyclical stocks, or the more defensive stocks. Yet it may be worth to take a closer look at the defensive stocks as you get closer to the time when you plan to make use of your savings.

But let us clarify that there is no scientific evidence that one type is better than the other type of stocks over many years. The discussion goes on whether you have the ability to jump on and off cyclically trends before anyone else, and it is a decision you must make for yourself.

Cyclical stocks for people with confidence

As you might know its smart if you buy a stock cheap and sell expensive. It’s even smarter if you can buy rapidly rising stocks in good times and then replace them with stable when the stock prices start dropping.

It's easier said than done, but it is still a discipline that every equity analyst will try to convince you that he is the champion in. Before you even begin to trade shares on the stock market peaks and valleys, it might be useful to note that private investors indeed constitute a significant proportion of trades on the exchange. But when it comes to volume, it turns out that private investors represent only a marginal proportion of total trade. Put another way: The professionals roll you down, if you're venturing out into a showdown with them.

Do not get affected by market fluctuations

Although an investment should be a calculated action designed to provide the highest possible returns, most investors recognize that rationality can be lost when the markets start to fluctuate.

Investment experts will, however, advice to have ice in your blood and avoid shifting market positions too often. Likelihood to dispose at the right time is in fact negligible.

The art of building an investment portfolio

Not only is it difficult to choose the best funds for an investment portfolio. It can sometimes be an almost impossible task.

After you based on your risk profile and investment strategy has formed an idea of what kinds of funds your portfolio should contain, you can begin to pick out the best in each category. For many, the first step would be to look at the historical returns.

How to choose the right risk profile

When you build up your portfolio of funds; they act as building blocks, which at best, creates a solid foundation for returns. But if the portfolio is composed wrong, you can have a high risk in relation to your investment strategy and will be confronted with a portfolio that easily collapses when the market starts to swing. Read on to learn about, how to choose the right risk profile.

Investment strategy and objectives: Invest with a purpose

What is a good investment for one investor is not necessarily the same for another. If you have the right strategy from the outset, it becomes easier to achieve your investment goals.

Why do you save up?
The question may seem trivial. Yet it is a question that most investors would benefit from asking themselves.

When you first move into the investment market, it is the hope of getting your hard-earned money to breed, but when you need the money and how much you wish to profit, are crucial to how your investments should be placed.

Cheap investments in stocks with Exchange Traded Funds (ETF)

Savers in private pension schemes are rarely offered the best stock product from their bank, especially if it is just good business for you, but a bad business for your bank.

It is extremely difficult for savers in private pension schemes to get access to share-based products that meet three basic criteria for a reasonable share strategy: