Investing In Shares

Investing In Overseas, Gold And Bank Shares

One of the best things about investing in the stock market is that it gives you plenty of opportunities to get your money to work for you. In this article, we give you the chance to learn all about investing in overseas, gold and bank shares.

Investing in Overseas Shares

Diversification is an important concept when it comes to investing in the stock market. Diversifying your portfolio allows you to minimise your risk and maximise your opportunities. The Australian share market is only 2 – 3% of the global equities market and even the US stock market only accounts for 40 – 50% of the world’s investing capitalisation. This means that there is still plenty of opportunity to be had overseas.

The first thing you will need to do would be to decide whether you want a professional to handle your holdings or you want to do the trading yourself. Thanks to the internet, you may now invest in overseas shares by simply opening an account with an online broker.

Do you want to do a direct investment via an overseas broker or would your prefer to create a mutual fund?

Investing in Gold

Of late Gold has become an increasingly popular option for investors.

Allocating a moderate percentage of your portfolio to gold and major gold mining companies can help to add more diversification to your portfolio as it has historical had a low correlation to stock market returns and can perofrm well during bear markets which can be quite useful in today’s uncertain economic times.

There are many companies specialising in gold stocks today and you will need to do your research on each of these companies if you want to ensure that your investment will bring you profit.

Experts advise gold investors to put most of their money on well-established gold companies while still putting some investment in smaller companies that have been showing plenty of gains. You might also want to study the various types of gold investment including junior gold stocks, direct ownership, gold mutual funds, gold exchange-traded funds and gold futures.

Investing in Bank Shares

You also have the option of investing in bank shares. Just like with overseas shares and gold shares, it’s important to do you research prior to making an investment. Know which banks are regional, which are national and which type you would like to invest in.

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