How to Start Investing？
The goal of the investment is to increase funds for the future。No matter what you dream of, investing can play a big role in your journey。
What you can invest in？
Stock is the ownership unit of a company。If you own stock, you become a shareholder。As a shareholder, you may receive dividends or regular profit distributions if the company is successful。You may also have voting rights in certain decisions of the company。Depending on the company's performance and other factors, the value of your investment may change。
There are many types of exchange traded funds (ETFs), covering different types of companies and industries。These investment products are often packaged and managed by financial professionals, so investing in ETFs often requires a fee。
Why invest？
Over the past 100 years, the U.S. stock market has remained resilient and growing in value。This is evidenced by the S & P 500, which resembles a scoreboard that tracks the 500 largest U.S. public companies。
Over the past 30 years, the annualized return on investment in the S & P 500 has been about 7.5%。In other words, between January 1990 and August 2020, the $1,000 investment that tracks the S & P 500 will increase to about $9,300 before fees and taxes are deducted.。The S & P 500 has been rising over the past 30 years, but its performance varies dramatically from year to year。For example, the index rose 37.5% decrease from 1995 and 37% decrease from 2008。
While the S & P 500 has grown over time, it is not a smooth or straight curve - in some periods, the index has fallen by 30% or more。
How to get started？
The amount and location of the investment is determined by the individual and depends on their income, expenses, schedule and risk tolerance。First of all, you should ask yourself a few questions: short-term investment or long-term investment？Do you have a savings or emergency fund?？
Which investment product to choose？
People choose investment companies for different reasons, and even if they choose the same company, two people may have different views。
Some investors believe in "investing in what you know" - which means investing in companies whose products you use, or in industries where you have expertise; others may prefer to invest in the entire stock market (for example, buying shares in ETFs or diversifying across many companies)。
You can form an investment perspective by following the news, doing some research, and understanding the different ways people manage their finances。When examining a stock or fund, it may be helpful to review the performance, management team, prospectus and financial reports.。
Note
The fractional shares are non-transferable to other brokerage accounts and all investments involve risk.。
Indices are not available for direct investment and returns are not reduced by fees or taxes。
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