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Investment Basics

Tips On Building Your Portfolio

Making your portfolio grow is the goal of every investor. Here are some useful tips to help you increase your investment portfolio.

Tip 1: Have a plan.

Tip 2: Have goals.

Tip 3: Do your homework. Read prospectuses, check indexes, find out all you can.

Tip 4: Invest regularly.

Tip 5: Reinvest your proceeds.

Tip 6: Diversify.

Tip 7: Stick to mainstream investments.

Tip 8: Pick quality investments such as high grade bonds, stocks and securities with a strong track record.

Tip 9: For growth, focus on stocks. Invest for the long term.

Tip 10: Avoid commodities, options and futures.

Tip 11: Avoid limited partnerships.

Tip 12: Remember to figure the actual return-the expected return minus inflation.

Tip 13: Monitor your investments periodically. Check your investments' returns against their benchmarks.

Tip 14: Don't panic and sell a good investment when it's in a slump.

Tip 15: Don't get greedy and hang onto an investment you were planning to sell at a certain price because you think it might go higher.

Tip 16: Never give a broker the right to buy or sell without your prior approval.

Tip 17: Never buy from a stranger over the phone.


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