The main purpose of management of personal welfare of each human is to save and increment. The stock market offers instruments for successful management of personal finance.
Get more details as on how to efficiently use the stock market's opportunities for reaching financial welfare
The basis of success in investing depends on how well the risk management system is designed.
It is believed that investors receive a higher return for higher risk (risk premium). If stability is more important to you, you buy less risky instruments, but get a lower return on them. It is possible to manage your capital effectively, balancing profitability and risk, by diversifying your investment portfolio with a balanced mix of risky assets (stocks and bonds) and risk-free assets (government securities).
Building an optimal investment portfolio in accordance with the portfolio theory and an investor's individual attitude to risk. Such type of investing will allow combining your main activities with capital multiplication using investments on the stock market.
This type of investing carries risks, however in comparison with the active investing they are not high.
При малых сроках инвестирования (1-3 года) пассивное инвестирование может дать убытки в случае негативной ситуации на рынке. В перспективе от 3-5 лет риски пассивного инвестирования снижаются, т.к. фактор долгосрочной инвестиционной доходности рынка перевешивает краткосрочные временные риски.
Personal participation in conclusion of trading deals and market analysis. The investor tries on account of better understanding of the market conditions to earn in some way or other a higher yield on the invested capital.
The main advantage of this type of investing is the independent management of your capital and taking over all risks. Besides, you won't need to pay fees to a broker who would otherwise mange your capital in case of passive investing.
When choosing the active investing, you should devote almost all of your free time to studying the market trends.
Building an optimal investment portfolio in accordance with the portfolio theory and an investor's individual attitude to risk. Such type of investing will allow combining your main activities with capital multiplication using investments on the stock market.
This type of investing carries risks, however in comparison with the active investing they are not high.
При малых сроках инвестирования (1-3 года) пассивное инвестирование может дать убытки в случае негативной ситуации на рынке. В перспективе от 3-5 лет риски пассивного инвестирования снижаются, т.к. фактор долгосрочной инвестиционной доходности рынка перевешивает краткосрочные временные риски.
Personal participation in conclusion of trading deals and market analysis. The investor tries on account of better understanding of the market conditions to earn in some way or other a higher yield on the invested capital.
The main advantage of this type of investing is the independent management of your capital and taking over all risks. Besides, you won't need to pay fees to a broker who would otherwise mange your capital in case of passive investing.
When choosing the active investing, you should devote almost all of your free time to studying the market trends.