Smart Tips That All New Investors Should Follow

1. Smart Tips That All New Investors Should Follow When an investor is just starting out in the world of investment and has not gathered much experience, it’s safe to say that they should follow the tried and tested methods of investing in order to stay on the positive side of financial health. While taking risks and putting efforts into market speculations can be done later on in one’s financial journey, a beginner investor should stick with strategies that have a long history and proven track record. Picking The Right Online Stock Broker What was once a drawn out and costly transaction conducted via telephone now takes place online in seconds. Today, most investors place their trades through an online stock broker. New investors would do well to follow the same. Choosing the right online stock broker comes down to an investor’s individual priorities. Before selecting an online stock broker, these are some points to judge: Consider Your Primary Needs:As a beginner investor, you probably won’t need extras, like an advanced trading platform. But you may want education about investing and general guidance. Many online stock brokers offer these services free to account holders. Account Fees: An investor may not be able to avoid account fees completely but can definitely minimize them. Common fees to watch out for when picking an online stock broker include annual fees, inactivity fees, trading platform subscriptions and extra charges for data. Commissions: Online stock brokers generally offer a menu of investment options such as individual stocks, options, tax saving mutual funds and bonds. Pay careful attention to the commissions associated with your preferred investments. Avoid New Fund Offers A new fund offer is the first subscription offering for any new fund offered by an investment company. A new fund offer occurs when a fund is launched, allowing the firm to raise capital for purchasing securities. New investors often make the mistake of looking at a new fund offer in the same way one would consider a forthcoming IPO. The difference between the two is that the price of a stock is based on the supply and demand of it, whereas mutual fund units have an endless supply. While companies might keep pushing newer and shinier new fund offers a new

2. investor’s way, selecting a fund that has been through various market cycles and is supervised by an experienced fund manager would be best to take advantage of. Explore Tax Saving Mutual Funds One of the most ideal ways to begin an investment journey successfully would be to explore the trustworthy tax saving mutual funds. As with all mutual fund schemes, there's no guarantee of any fixed returns. But a first-time investor can still expect consistency, dependency and the opportunity to earn higher returns over the long run with tax saving mutual funds. These are only a few basic, but smart, methods by which a new investor can navigate his or her way through investments. What ways could be added to this list?