The investment needs of two individuals are never identical and as such investors should never follow the investment needs of others blindly.
To earn lucrative returns, it would be better to consult a professional for investing and saving like a pro.
Most clients will tell you that a financial expert or an advisor will personally evaluate your individual profile and income-earning capacity while giving you a patient hearing.
Based on various reviews and ideas given by experts here are three tips for you…
Certain deductions are allowable like for payment of insurance premium, repayment of the loan, investment in tax-free bonds, infrastructure bonds, contribution to a charitable institution and investment in ELSS (equity-linked saving scheme), etc.
In order to save a huge tax burden, investors plan to allocate funds in these avenues. If you can, you will easily save good money every year.
According to XTRgate review commodities trading, currency trading, and trading of derivative instruments like futures, options, and swaps are on the upswing.
Arbitrageurs take advantage of the differential pricing in the different markets of the world.
It is the speculators and the arbitrageurs that play a good game, whereas the innocent investors are guided by the brokers, stock broking houses, market analysts, or financial advisors.
It’s therefore essential that you gain good information and choose wisely about the assets you want to trade-in.
Selection of the financial instrument
Picking up equity stocks or bonds/debentures would depend upon the expected return and the beta of the stock.
Usually, high beta stocks are considered aggressive securities, and low beta stocks are defensive securities.
Thus, speculators hedge against the risk. Equity research reports can also help in a big way in the stock selection process.
The interest on bonds/debentures is also a motivating factor, as the bond yield varies with the maturity period.