What Do You Need to Invest in the Financial Market?
Posted by John Zeller on March 21st, 2018
Do you need to be an accountant to invest in the financial markets? Definitely, if you have accounting knowledge, they would be useful to you when trading shares in public companies tax accountant Oakville. However, accounting is by no means a leading factor in deciding whether to invest your savings in the financial markets. Such type of investment is an interesting alternative to bank deposits. The average expected return is around 10-15%, and the risk you take ranges from moderate to high. The main plus that would make you invest your savings (all or part of them) in trading in the financial markets is the fact that the income that can be achieved is unlimited. Unfortunately, you may think that if the income can be unlimited, the same applies to any losses.
It is very possible that the knowledge you have about stock exchanges and capital markets is derived from Hollywood movies. But the truth is far from being as it is on the broad screen. For your sake, perhaps, this is not a life filled with endless parties, drinking and traveling. At the same time, this is not something that is so complex that it requires specialized education and serious knowledge of graphs and numbers.
In real terms, you can entrust another person to manage your money, for example by investing in mutual funds. Accordingly, his services will cost you a certain amount, the result is not guaranteed, and in many cases, it may be completely negative. But the advantage in this case is that in the long run you can get a high yield that you have not dreamed of.
However, according to financial consultants, the tentative index growth expected to come as a result of the payout of CCB deposits is expected in the next few months. Even at the moment, some mutual funds report a yield of about 15 percent since the beginning of the year.
One of the really attractive sides of mutual funds that attracts people is the ability to choose a risk profile, but at the same time to make a combination of several different profiles to balance the risk. Low-risk funds invest mostly in deposits and various instruments that have a return equal to that if your money is deposited with the bank. Funds that are balanced usually make combinations of stocks and bonds. Funds that are highly risky mainly invest in shares.
Another attractive side is that these funds can offer you a geographical or sectoral focus. This means that there are funds to invest in financial stocks and commodity markets that are located in a particular geographic region or in companies' shares of a particular sector of the economy (for example, automotive).
If there is a need to make a comparison with time deposits, the funds have a big advantage over them and that's their absolute liquidity. This means that when a person judges he can withdraw his money at any given moment without losing the income he has accumulated to date.
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