TIPS FORFIRST TIMEINVESTORS

PENNINGTON CAPITAL

Brush Up on Financial Terms

If you are just getting into investing, any advice may read likegibberish. Be sure that you understand a broad array of

financial terms, such as mutual fund and expense ratio, beforeyou put your money anywhere.

Begin with Familiarity

If you are first entering the stock market, it is best to start byinvesting in companies you know. It helps to invest in

companies of which you are a regular patron, such as yourfavorite coffee brand or clothing store.

Diversify

You do not want to put all of your money into one company. Ifthe company does not do well, your shares will become

worthless, meaning you will lose all that money. Be sure toinvest in various companies, and build out your investment

portfolio.

Consider an Advisor

Investing for the first time can be scary, and there is no doubtyou will have a lot of questions. You can probably find an

investment advisor at your bank to answer said questions ifneed be.

Invest Through a Fund

For beginner investors, investing through a fund is the best wayto start. A collective fund is affordable and will allow an

investor to put his or her money into several different assets.

Buy a Fund Through a SupermarketPlatform

Buying a fund through a manager costs more money than it isworth. Fund supermarkets are a lot less expensive, will allow

you to review your assets whenever you like, and will only costyou a flat fee or a percentage of your investment.

Keep Your Investments Consistent

Feed your fund on a regular basis. This is the only way to havethe best chance to maximize your returns.

For more advice on investing for thefirst time, go to MoneyWise.