Where to Invest?

Discussion in 'Stock Market Education' started by waseem59, May 9, 2014.

  1. waseem59

    waseem59 Well-Known Member

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    Which is the best place in the stock market where i can invest without any risk. give me some knowledge on the best stock market place where i can avoid loosing my money which i have invested.
     
  2. SteakTartare

    SteakTartare Senior Investor

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    Well, there is no such thing as an investment without some risk. What are you investing goals? Clearly, you're looking for a conservative approach, but some more details on what you are trying to accomplish will help. :)
     
  3. JadeDoo

    JadeDoo Well-Known Member

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    If you want to be super conservative go with GIC or treasury bonds, but that's probably not what you are looking for since the returns are so low. Alternatively you can look into cooperate bonds or munipical bonds that will give you 3-5% for relatively low risk.

    Now if you are just looking to buy stocks, then the most conservative sectors are probably Utilities, Consumer Stables like Grocery stores, and Telecom. If you have a big portfolio though, you'll want to diversify as well to reduce risk.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    No such thing as NO risk. But if you want principal protection and NO downside fluctuation even month to month, stick to CDs, more conservative money market accounts, savings accounts, etc. Basically anything FDIC insured. These things pay very little these days, but you have very little chance of the FDIC failing, and not much more of a chance these days of a reputable institution failing.

    Credit unions tend to pay more interest to members in deposit accounts, at least up to a certain amount deposited. I have a feeling we may eventually see a bubble there though, due to the way many of them will write a 15% loan to just about anyone in order to pay you 5% on a deposit account.

    If you're willing to tolerate at least a little month to month fluctuation in value with a guarantee of principal at a future date, various bonds and other debt instruments can be good for this. They will tend to drop in value once rates start going up, but again you are guaranteed a return of principal at maturity. Just remember that any debt you buy is only as good as the issuer itself is.
     
  5. Gelsemium

    Gelsemium Senior Investor

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    If you have some money to invest, usually banks can give a solid advice, they can invest your money with the return (or not) proportional to the risks you want to take.
     
  6. InterestedInvesto

    InterestedInvesto Active Member

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    So would you advise investing in large companies in these sectors, or smaller companies? I do not have much money to spend and if I look at large companies (share price > 100$) I'll be able to buy a couple of stocks at most.
     
  7. wanderingwildman

    wanderingwildman Well-Known Member

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    There is definitely no safe investment. I would just say stick to recession proof products like government, technology, and education. But, you are never truly safe.
     
  8. Gelsemium

    Gelsemium Senior Investor

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    Yep, that is why many people do not invest, they are afraid of what they don't know and what they do know is that they can lose the little they have.
     
  9. crimsonghost747

    crimsonghost747 Senior Investor

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    Since no risk seems to be the main thing for you, I'm afraid the super low interest of low term savings accounts might be your best bet.
     
  10. InterestedInvesto

    InterestedInvesto Active Member

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    Government bonds are supposed to have low risk right? But, with low risk, you only get low returns (understandably).
     

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