Whether you’re a beginner in Singapore Stocks investment or an expert, Stock market is comprised of ample of opportunity for money making. Although there are several methods for investing in stock market, here 4 major key points are focused which must be followed while investing.
Method #1: The Tortoise Method
This method is a ‘Slow & Steady’ approach to obtain good profit potential in the stock market. By following this method, there are very fewer chances to lose your money with the low-risk factor. Also by implementing this method, your assets are safe & secure.
Besides this the tortoise method includes “Blue Chip Stocks” & “Investment Grade Bonds”, which are as follows:
Blue Chip Stocks:
Blue chip stocks are present in large & financially stable companies. Only 30 out of 800 companies are listed at the Singapore Stocks Exchange are blue chip stocks.
If you’re having complications to buy your first lot, then you can follow blue chip method. Through Blue chip stock investment, you can use your money a passive income and can also be reinvested to earn more profit.
Investment Grade Bonds:
Investment grade bond (AAA, AA or AA+) consists of credit ratings which calculate credit value. In this type of bond, you have to pay the interest in six months or annually.
Method #2: Value Investing
In value investing, investors find the stocks that are usually undervalued or very cheap for growing purpose. Investors buy the stocks when stocks are priced down in the market.
Value investors find these undervalued stocks through deep analysis of companies rather than analyzing the stock prices. Overall they completely invest in the company, not in the stock.
Before thinking of value investing, it is recommended that to analyze the annual reports deeply as well as you should be able to understand the business strategy of stock investment. With this, you can also take advice from any advisory firm to get correct stock picks for how to be a good value investor.
Method #3: Speculative Investing
As the name indicates, it is a highly risky method. This method consists of purchasing the penny stocks at an initial stage of investing with the junk bonds. Then the investor predicts that this invested capital will provide a good return. According to statistics, the investors lead to a loss in order to make instant cash. Investors who follow this method are already prepared to remove their trading account.
Method #4: Hand off Investing:
As an investor, if want to give authority to take decisions about investing to someone else, then this is the best method for you.
There are several asset management companies, insurance companies & fund managers that will manage all your investment plans. For this, they will charge some amount from you and this amount will be reflected as a ‘Total Expense Ratio’ or this will be an effect of deduction in an insurance company.
In Singapore, the majority of investors apply this method to their insurance policies. If you have no time for investment or if you don’t want to know about investing, you can follow this method.
Singapore Stocks Market Analyst final Note:
The bottom line is that when it comes to investing and makes money then always takes care of safety & security and follows the strategic plans for your Share investment which will have low-risk factors. It’s also recommended to get help from professional advisory firms so that you will be assuring of getting successful stock investment picks which will provide you with good returns.