I use Mutual funds and the stock market.
Go to school. There are lots of books on the subjects.
I would start with mutual funds first, they are less risky. Only buy no-load, no transaction fee funds with low management fees.
2006-09-01 00:12:16
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answer #1
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answered by Anonymous
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It entirely depends upon your temprament, time horizon for investment, your risk-profile. If you are new to investing better go for Mutual funds only as stock market and commodity require good amount of knowledge before you start reaping profits. so better start with mutual funds, as they have the right kind of knowledgeable investment and fund managers, who understand the intricacies of the markets. For selecting right MF, you can visit the following sites, myiris, icicidirect or moneycontrol etc.
2006-09-03 07:41:02
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answer #2
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answered by ash22 1
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The answer isn't "which one is the best", but the answer is "which one is the best for YOU". Different people have different temperments. A person with a low risk tolerance level is not going to be happy trading commodities, where as a person with a high risk tolerance level is going to be bored trading mutual funds. Before you start investing, there are 3 questions you need to answer:
1) What are your income requirements? That is, how much do you want to make?
2) What are your time horizons? When do you want to make this money? In weeks, months, years, etc.?
3) What is your risk tolerance level? This is very important because you need to know what kind of risk you can handle.
When you've answered these 3 questions, you can then seek out the investments that meet these criteria. Take my for example, my answers are:
1) I want maximum profitability
2) I want to be in the trade at maximum 4 weeks, but preferably 2-4 days.
3) I have a very high risk tolerance level.
By answering these questions, I know that futures, options and Forex are what I'm looking for because they satisfy those criteria.
I love when people say stocks are the best, when they haven't traded anything else. If you want maximum return, then stocks are not the place to be. Let me give you an example:
Let's say you buy 1,000 shares of XYZ Corp. at $10 per share, for a total cost of $10,000. Let's say the stock triples to $30 per. You just made $20,000 in profit. If you traded on margin, you could control 2,000 shares for that same $10,000 and then cashed out for $60,000, leaving you a profit of $50,000. Not bad, right?
But, let's take a trade in a futures contract. Let's say you bought 50 wheat contracts at $3.00 and let's say wheat only increases by $1.50 and goes to $4.50. Now, let's compute your profits. As of 8/30/2006, the margin (which is a good faith deposit in futures) is $945 per contract or $47,250 (50 contracts x $945). Now, wheat has risen by $1.50. In the futures market, each contract controls "X" amount of units of the asset and the profit is the price times the number of units times the number of contracts. For example, 1 gold contract controls 100 oz. of gold, so if you had 5 gold contracts and you made a $20 profit, that's $20 x 100 oz. x 5 contracts for a profit of $10,000. In terms of wheat, 1 full wheat contract controls 5,000 bushels of wheat. So, you have a $1.50 profit, so it's $1.50 x 5,000 bushels x 50 contracts for a profit of $375,000.
In the stock example, you were hold 1,000 shares (2,000 if on margin) and prices TRIPLED, leaving you with a 200% profit (or 500% profit if on margin). But, with the wheat example, you were holding 50 contract and prices only increased by 1/2, but you received almost 700% return. In other words, the stock price had to TRIPLE, to even begin to come close to reaching the kind of return in wheat and the wheat price only increased by 50%.
Now, before you go trading futures contracts, futures are THE RISKIEST investments there are out there. The $375,000 gain could just as easily be a $375,000 loss if wheat dropped from $3.00 to $1.50.
What you must do if find which investments best fit your needs and goals. If you get into the wrong type of investment for your personality type, needs and goals, you'll either lose money or get bored and get out to early. My best advice is consult a professional financial planner and have them guide you in which investments are best suited for your needs.
Good luck
2006-09-01 01:37:11
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answer #3
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answered by 4XTrader 5
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the investment in these markets depends up on the needs of person if he wants the safest option then he should opt M.F.but if he can take risk n want practical exposer then share market is better .commodity is the market with high returns and high risk. for further info. contact me on kshirsagar_gaurav@yahoo.co.in
2006-09-01 22:48:17
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answer #4
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answered by gaurav k 1
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each are good investments, and it depends on how risky you want to be. Personally, I am young and have the majority of my $ in high risk stocks. (trying to make a quick buck) I also have a little money in a steady low risk mutual fund for long term growth. (ECSTX) is the name of it, and it has a good track record. The key is, you have to diversify. And dont nickel and dime yourself to death by making trades based on hot tips. good luck. here is a good site for beginning investors. www.investopedia.com
2006-08-31 19:23:08
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answer #5
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answered by cmil8 3
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NO gain without PAIN
Equity is best and risk is there, if you want to make more money you need to take Risk.
Or else
Go for NSC, KVP Certificates they give u 8% returns with no risk.
Bye & Take Care
Vijay
2006-08-31 23:34:24
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answer #6
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answered by Vijaypappu 2
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right this is one element to bear in concepts concerning to the Roth IRA account. there is in no way any tax on it the place as there is on your 401k. This turns into substantial while thinking your asset blend. income producing investments are taxed on the completed tax fee as would be your 401k. for this reason it is clever to invest a minimum of a few of your 401k in income producing materials--bonds, LPs, REITs. The income from each and each of those is taxed on the completed tax fee besides. Now using fact the Roth IRA is in no way taxed, it is likewise clever to place those kinds of materials into the Roth IRA additionally. and additionally fairness investments. What you omitted to point are investments outdoors of those 2 automobiles. in case you have some, they could desire to be investments that could desire to be taxed on the capital valuable properties fee--fairness investments. honestly, except you're interior the utmost tax bracket it is clever to have an element of your fairness investments outdoors of a 401k. via doing so your finished tax invoice would be decreased, exceedingly once you're a protracted term investor. in case you have the least hankering to invest a number of you cash in gold and silver those honestly could be interior of a Roth IRA. the two are taxed as collectibles otherwise. yet another element to evaluate in regard to the 401k is that throughout the time of years to come the tax fee could desire to honestly be bigger, consistent with danger lots bigger, than it presently is. on account which you rather have no decision of putting non-mutual fund investments interior of a 401k aside from consistent with danger company inventory, it rather does make sense to invest Roth IRA income company shares extremely than mutual money. yet be careful. it is amazingly tempting for many to invest with their Roth IRA account exceedingly short term paying for and merchandising which otherwise may be taxed on the completed tax fee. that could desire to be a sturdy thank you to decrease that value of the Roth account. Be purely a touch careful. make investments interior the likes of MCD, WMT, JNJ, BDX, KO, etc. or perhaps ETP with its 8% dividend or PAA with its 7.5% dividend. and don't make investments it in fewer than 5 distinctive businesses.
2016-10-01 04:07:04
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answer #7
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answered by ? 4
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