Create My Personal Portfolio of Stocks
This saying applies to anything and everything under the sun and it applies to mutual funds as well.
Did you know that according to statistics, in the period between April 30 1995 and April 30 2005, 78.
6% of active mutual fund managers were unable to beat the S&P 500? And these managers are the so-called masters of the game.
Well, if you spend adequate time researching then it will be possible for you to upgrade the performance of your mutual funds and earn good profits.
How can you do that? All you need to do is create your personal portfolio of stocks.
With your own portfolio, you will be able to exceed the average growth rate of 8.
4%.
You will outperform S&P 500 without paying a single penny to your mutual fund manager.
How to create my personal portfolio of stocks? Here below are some handy tips that will help make your personal portfolio: #1.
Never fight the indexes: There are three general indexes that measure the performance of the market.
They are - Dow Jones industrial average, the Standard & Poor 500 Index, and the NASDAQ composite index.
Study the charts of one year and see which direction the chart is moving.
If you find that the indexes are moving down, then monitor your current positions very carefully.
Sell and gain profits whenever it is appropriate and refrain from buying new positions.
Only think of buying new positions when you see that the general market is going up.
Finding winners in a downward market can be like searching for a needle in a haystack.
Although possible, the odds will be against you.
#2.
Change is good: Stocks will perform better when a change takes place; these changes can lead to increase in stock prices.
For example, the stocks of Apple are up over 50% for over a year now.
The changes that took place about 12 months back in the company are resulting in a large increase in present stock value.
Therefore, keep an eye out for changes; be it changes in the product, monetary performances or management.
#3.
Financial credibility: You need to look into the financial performance of the company.
If the company performs well and has consistently shown growth in sales inflow then it can bring good results.
Also, check to see if the net profits and the earning are growing at a high rate every quarter and per annum.
If so then you have a possible winner on your hands.
Stick to the company and expect good returns.
The above points will help you create your personal portfolio of stocks and even outsmart your mutual fund manager.
No longer will you feel the need to pay a mutual fund manger to do the task of handling your stocks.
After all, why should you depend on others, when you can be the master of your destiny yourself!