beginner investing stocks Article

investing Navigation

Basics Of Stock Market Investing
Beginner Investing
Beginner Investing Stocks
Beginner Investing Tips

Below, you'll find extensive information on leading beginner investing stocks articles and products to help you on your way to success.

Is It True That Regular Index Investing Performs Good Result With Low Risk?
By Alexander Korablev
There are many mutual funds and ETF on the market. But only a few performs results as good as s&p 500 or better. Well known that s&p 500 performs good results in long terms. But how can we convert these good results into money? We can buy index fund shares.

Index Funds seek investment results that correspond with the total return of the some market index (for example s&p 500). into index funds gives chance that the result of this investment will be close to result of the index.

As we see, we receive good result doing nothing. It's main advantages of into index funds.

This investment strategy works better for long term. It means that you have to invest your money into index funds for 5 years or longer. Most of people have no much money for big one time investment. But we can invest small amount of dollars every month.

We have tested performance for 5-years

regular investment into three indexes (S&P500, S&P Mid Caps 400, S&P Small Caps 600). The result of testing shows that every month small amounts of dollar gives good results. Statistic shows that you will receive profit from 26% to 28.50% of initial investment into S&P 500 with 80% probability.

We must note that into indexes isn't risk-free investment. There are results with loosing in our testing. The poorest result is loosing about 33% of initial investment into S&P 500.

Diversification is the best way to reduce risk. into 2-3 different indexes can reduce risk significantly. Best results are given by into indexes with different types of assets (bond index and share index) or different classes of assets (small caps, mid caps, big caps).

You can find full version of this article with full results of our tests here: http://fplab.com/node/116
Alexander Korablev is head of FPLab Team. Fplab.com is trainings and courses catalog for traders and investors.

We strive to provide only quality articles, so if there is a specific topic related to investing that you would like us to cover, please contact us at any time.

And again, thank you to those contributing daily to our beginner investing stocks website.

Additional Related Resources

Stock Investing Basics – What Are Your Investment Goals
By bongski
When it comes to investment pursuits, first time investors usually want to plunge in with the needed knowledge and trading. Unfortunately, only a few of these investors find success, which only means Read more...

3 Advantages Forex Trading Has Over Stock Investing
By Christopher M Lee
There are some advantages of Forex trading over stock investing and in these bearish of market times, it would be pertinent to know about them. This article will list 3 main advantages of the paper Read more...

Investing In A Recession
By Andrew Marshall
As we all know we are currently in recession. How bad it will be and how long it will last is the subject of much debate. At it will be no surprise to hear that this means there are less and less Read more...

Investing For Beginners
By Sonika
Stock Market Investing for BeginnersAt the bottom of the heart, every individual desires to be more knowledgeable in the field of stock market investing. Almost every one wishes to Read more...