Wednesday, 10 November 2010

My favourite method for selecting investments (Part 3 of 4)

* After that, you need to establish the infrastructure to manage your savings. Opening a brokerage account is a straightforward process in most countries, although it seldom takes less than a week. Many brokers accept orders by phone, but you are going to need internet access for the purposes of research.

* The final steps of my suggestion require that you establish an effective system to select your investments and devote a few hours per month to implementing it. An easy method of researching shares consists of identifying some reliable mutual funds that invest in dividend-paying equities and using the internet to look up their portfolios.

You will find the names of well-known mutual funds in any financial newspaper. More often than not, the web pages of those firms indicate which shares they have been holding in their portfolios during the last quarter. If you look up the web pages of a dozen different firms, you can get plenty of ideas about shares that might be worth considering for your personal portfolio.

To be continued in Part 4


[Image by Paul Resh under Creative Commons Attribution License. See the license terms under]