Mutual Funds

Types of Investments

The following are a few basic types of investments with easy to understand explanations. If you are looking for investments for beginners, this is a great place to start. Learning about investing basics as a whole is an important first step towards earning a lot of money with securities.


Stocks are equity investments. By purchasing stock in a corporation, you become part owner in the company, called a stockholder. You have the right to vote in the company because you are a stockholder. You can earn money two ways with stocks. Capital gains are earned when the value of the stock increases. If you buy stock A at $10 and then sell Stock A at $13, you make $3.

Many corporations also pay dividends to their stockholders. This is often done on a quarterly basis. For example, Company B might pay $.25 per share you own per quarter. If you own 100 shares, you will be paid $25 every 3 months for a total of $100 a year. Corporations are not required to pay dividends. Usually, stronger and more established companies pay dividends consistently and new companies wait for growth. Read the full story

Balanced Mutual Funds

Way back when I first started learning the investing basics it was all about buy sell buy sell! How many stocks could I buy and how quickly could I do it? As you can imagine, I wasn’t too successful. Even if my stocks inexplicably returned a profit the broker’s fees absolutely killed my overall takings. A friend put me on to mutual funds and although they don’t quite give me the same buzz as buying stocks does, my returns have certainly improved.

After I had a few mutual funds setup I started to notice that performance of some of them was quite sporadic. I remember thinking how people had told me this was a safer way to invest. Not from what I could see! I started to research dividend paying stocks and the topic further and that’s when I found out about balanced mutual funds and how they offer a safer way to invest. After the economic downturn in 2008 I had a serious look at my portfolio. Some of which had been hit pretty hard. From that day on I swore to take a much more cautious approach to my investing life. My motto now is very much safety first. Read the full story

How to Make Money in the Stock Market

To achieve success and lots of money in stock market, you either have to become a financial guru yourself or to get professional help from a stock market mentor or a real successful financial expert. They will teach you good stock market principles on how to make money in the stock market. Stock market is such an unpredictable and roller coaster place that there is no place for half-expert or financial pretenders.

The naked reality is that only a small portion of trained and savvy investors rake in disproportionate big amount of return, many times at the expense of the other investors. But these few people know how to make money in the stock market. Is it not a disparagement to “Wall Street expert” professional title when a number of these so called “expert pretenders did not make a killing nor even achieved a breakeven in the investment. Read the full story