Category Archives: Investment

How to Become an Investment Banker

This is a complete guide post on how to become an investment banker. If you’re interested in becoming an investment banker, this guide will walk you through the process quickly and easily. Whether you are looking for the best way to become an investment banker or just want to know what’s involved, this guide will help you a lot.

Investment banking is one of the most money-producing jobs for any individual in any country. Especially in the US, where a fresher gets paid quite more than even a software engineer, people think of becoming an investment banker.

In this post, we will look at different sides of investment banking. We shall discuss different questions regarding investment banking, starting from – what it is, how it is different from commercial banks (the banks that we deal with in our regular life), and of course – the main topic of the post – How to become a successful investment banker.

So, let’s start the post from the absolute beginning so that you can understand everything related to investment banking.

Investment banking is a kind of big banking system that usually involves great transactions with giant companies for loans, IPO, etc.

So, investment banking is the profession where you take care of and assist mostly financial transactions between giant companies for ultra-big transactions. Investment banking is never as easy as commercial banking, and that’s the reason why investment bankers get double or even triple the salary of a normal commercial banker.

The first step to getting into any job is to study and gain the required knowledge. The same applies to investment banking. In the upcoming lines, you will learn about the academic qualifications you will need to become an investment banker.

Finish Class 12 To Become an Investment Banker

The first step to getting into investment banking from the academic perspective is to pass out your 12th class. In some countries, there are some necessities for having good marks (for example – more than 50%) to get into investment banking.

If you haven’t passed class 10th and are planning to get into only these kinds of fields, the most appropriate field of study will be commerce. However, students from Science backgrounds can also come into this field. Even if you are from an Arts background, investment banking will not be the toughest job for you.

A great academic performance is always a key point in the way of getting selected for any job. So a good academic performance or a glorious mark sheet is always preferred.

The Mark Sheet

The mark sheet indicates your rote learning ability in the particular class and your ability to grasp things at a certain age and digest them – which is undoubtedly a matter to consider for a job interviewer. Investment banking is one of the most preferred jobs in the United States; that’s why the demand to get into the field is pretty high. And some factors keep you ahead of others in your career.

The college/university

It’s a fact that interviewers usually give preferences to the students appearing from good and renowned colleges or universities. Because it ensures that the student who has been admitted to a top college or university has at least a good depth of knowledge in their field.

So, if you are from a good school or college, the chances to crack an interview in any investment bank are usually in your favor during the interview. Interviewers are seen to prioritize students appearing from top-tier colleges like – Oxford university or Cambridge University.

But, if you are not from any renowned school or college, don’t worry. You still have plenty of chances to be an investment banker (remember: we have said that students from top schools or colleges get priority/preference, but they are not the only ones who get selected.) But it is always recommended that you should have depth in the subject you are studying.

If you got a good college degree, the next thing you can do is to get into an advanced study in finance, especially investment banking. There are many colleges in the US which are offering these kinds of degrees.

Having one of these degrees on your resume surely puts you ahead of any interviewer. They also certify that you are more eligible for the job than others because you know what the job deals with and will be your duty in the job. An MBA is one of the preferred degrees in this case, and again, an MBA from a top college is always in your favor.

Interview To Become an Investment Banker

From the very later of getting just a college degree, you should look for these interviews of investment banks held in different places. The best places are the interviews held in your college – which provide the maximum chances of getting selected. Get good marks, grab some related skills, and you are all set.

Conclusion

So these were the basic steps to becoming an investment banker. We have only discussed the most common ways to become an investment banker. Getting a job is never easy because of the popularity of the field and the demand for the job. An internship might help you make the impression of already having previous knowledge of the job, which is highly appreciated.

Best Money Market Mutual Funds

In this article, our discussion will be on the best money market mutual funds of 2022.  Now, the money market may seem like a very new topic for those who do not have in-depth knowledge of the stock market.
Let us understand what the money market is with a short story and how it is different from our general share market –

Money market vs. Share market – Differences:

We all have heard the name of Warren Buffett, often remarked as the greatest investor of all time. When asked about the best process of making money from the stock market, he answered, ‘Patience is the key.‘ To make definite money from the stock market, not only are the selections of great companies enough but also, one must have to keep patience to succeed in the stock market.

But, as usual, we search for ways to get rich quickly. And that is probably the reason why some people do not like the money-making process of the stock market.

That is why there is something called MONEY MARKET – which is a bit different from the stock market, and as per our discussion, you probably have understood the prime difference between the stock market and the money market. The prime difference between the stock market and money market is on the basis of the timespan of investing your capital.

The timespan of capital generation in share market & money market:

While the stock market is for long-term capital generation, the money market is oriented to generate capital in a shorter time span. The stock market deals in equity or direct shareholding of a company, whereas the money you keep in the money market is invested in debt.

Returns in stock market & money market:

Another key difference between the stock market & the money market is the percentage of returns. As the stock market deals with equity, the return you will get in the equity share market will undoubtedly be higher than the money market.

Risk factors in money market & share market:

However, when we talk about the risk involved in the share market & equity market, the scenario changes. It is known that the money you keep in the stock market is subject to market risk, but the money you invest in the money market involves significantly lesser risk as it deals in bonds and debts.
It is hoped that from these comparisons, the difference between the share market & money market is understood.

Now, it is time to compare various money market mutual funds available to invest in the USA.

Vanguard Treasure Money Market Fund:

Vanguard Treasure Money Market Fund is our first pick on this list. The key reason behind our pick is the name associated with the fund. Vanguard is one of the leading investment companies across the globe. As of current data, about 8 trillion dollars is actively managed by Vanguard.

Vanguard Treasure Money Market Fund is an actively managed fund. It is also one of the safest funds out there because this fund invests most of its undermanaged assets in the United States Treasure securities,

The Vanguard Treasure Money Market Fund is primarily a debt fund, which is why 80% of the assets are invested in Government debts. This does not signify that it only invests its assets under the Government, but data from its official website support the aforesaid statistics. The fund’s expense ratio as of today is 0.09% & the minimum amount to invest in this fund is $3000.

Vanguard Treasure Money Market Fund – at a glance:

Asset management companyVanguard
Fund typeActively managed money market fund
Minimum amount of investment:$3000

Pros of Vanguard Treasure Money Market Fund:

  • Has beautifully outperformed the benchmark index
  • Managed by a trustworthy company
  • Very low expense ratio
  • Most of the managed assets are kept under government securities

Cons of Vanguard Treasure Money Market Fund:

  • The minimum investment amount is a bit high

American Century Capital Preservation Fund:

Our next choice is American Century Capital Preservation Fund. However, this fund is mainly for people who are short of money to invest in the aforesaid fund. The minimum amount required to invest in this fund is just $500.

Remember that this is applicable when you do a SIP in this fund. Only in the case of SIPs, the minimum amount to invest in this fund is $500. Otherwise, in a normal case (lumpsum investment), the minimum investment amount is $1000 (still way less than $3000 in the Vanguard fund). But the first thing that disappointed us about the fund was its returns over the years.

The fund has continuously failed to outperform the benchmark index (i.e., the Bloomberg Treasury bill index). This fund’s expense ratio is also comparatively very high – 0.48%.
One should invest in this fund if he/she is searching for a fund that pays dividends at regular intervals. It is one of those few funds which pays a 0.2% dividend on a monthly basis.

American Century Capital Preservation Fund – at a glance:

Asset management companyAmerican Century
Fund typeMoney market fund with a good dividend yield
Minimum amount of investment$2500
Expense Ratio0.48%

Pros of American Century Capital Preservation Fund:

  • Pays dividends at regular intervals
  • Minimum investment amount is not out of reach

Cons of American Century Capital Preservation Fund:

  • Has failed to outperform the benchmark index
  • Comparatively higher expense ratio

Vanguard Federal Money Market Fund:

Now let us get back another money market fund offered by Vanguard. This fund is named Vanguard federal Money Market Fund. From its name, it is clear that the fund assets most of its wealth in bonds offered by The Federal bank. Data tells that 99.5% of the money invested in this fund is invested in cash.

This fund also requires the same amount of money needed to make an investment in the Vanguard Treasure Money Market Fund – the amount is $3000. It keeps 23% of its invested amount in U.S. treasury bills.

Vanguard Federal Money Market Fund – at a glance:

Asset management companyVanguard
Fund typeActively managed money market fund
Minimum amount of investment$3000
Expense Ratio0.11%

Pros of Vanguard Federal Money Market Fund:

  • Run by a popular asset management company
  • Low expense ratio
  • Keeps 99.5% of its assets under the U.S. government

Cons of Vanguard Federal Money Market Fund:

  • The required minimum amount if the investment is a bit higher than the above fund

Fidelity Investments Money Market Portfolio:

Fidelity Investments Money Market Portfolio fund is suitable for those people who have a huge amount of money but do not want to keep that money settled in their bank account for a long time. Instead, you can invest in the fund to earn minimal interest on your money.

The money you will keep in the fund will have high liquidity – just like any other money market fund. This ensures that you can withdraw your money at any time when you will need this.

Unlike the previous Vanguard funds, this fund does not allocate the lion’s share of its assets under bonds issued by banks/cash. It has a typical investment yield of about 25% of its assets which it invests in companies connected to financial services.
Surprisingly, the fund allocates just 2.4 % of its under-managed assets in U.S. Treasury debt.

Fidelity Investments Money Market Portfolio Fund – at a glance:

Asset management companyFidelity
Fund typeMoney market fund
Minimum amount of investment$1000000
Expense Ratio0.21%

Pros of Fidelity Investments Money Market Portfolio Fund:

  • The fund invests its under-managed assets in financial-service-providing companies
  • Creates a well-diversified portfolio

Cons of Fidelity Investments Money Market Portfolio Fund:

  • The minimum amount required for investment is huge – unsuitable for most single individuals.
  • The expense ratio is slightly high

Pimco Government Money Market Fund:

If you have the required money to invest in the aforementioned fund but are not willing to invest in it simply because it has a higher expense ratio – there is a better deal for you – Pimco Government Money Market Fund. Pimco Government Money Market Fund is another good idea to invest in as it tries to act as a fixed income source.

According to their documents, this fund invests in high-quality treasury & other money market instruments. This fund assures that their undermanaged assets are invested only in government securities.

Pimco Government Money Market Fund – at a glance:

Asset management companyPimco
Fund typeMoney market fund providing fixed income
Minimum amount of investment$1000000
Expense Ratio0.14%

Pros of Pimco Government Money Market Fund:

  • Tries to generate fixed income
  • Allocate most of its money under U.S. treasury bills, most of which are secured by the U.S. government
  • Has a lower expense ratio than the previous fund

Cons of Pimco Government Money Market Fund:

  • Like the previous fund, this one also has the same minimum investment amount – 100000
  • Total asset under management is lower than other funds

Federated Hermes Prime Cash Obligations Fund:

The last point we are talking about requires half of the minimum investment amount required for the above two funds. It has a wide amount of diversification in its portfolio. The Federated Hermes Prime Cash Obligations Fund mostly invests its assets under securities offered by banks, corporate companies & the U.S. government. The fund is managed by fund managers having lots of experience.

Fidelity Investments Money Market Portfolio Fund – at a glance:

Asset management companyFederated Hermes
Fund typeActively managed money market fund
Minimum amount of investment$500000
Expense Ratio0.20%

Pros of Vanguard Treasure Money Market Fund:

  • Has a wide range of investment instruments
  • Actively managed fund with fund managers having good past experience
  • Invests in securities issued by banks also

Cons of Vanguard Treasure Money Market Fund:

  • The minimum investment amount is not high as the past two funds – but still slightly higher than a normal salaried individual
  • The expense ratio could be a bit less

Things you should take care of before investing in a money market fund:

Remember that, though money market funds provide you with the facility of liquidity, if you are expecting higher returns on your invested capital – you should not invest that capital in a money market fund.

Most money market funds declare a fixed income by their funds. But there are steal some funds which do not take the responsibility of delivering a fixed income on your capital – while investing in any money market fund, and you should obviously take care of that.

Another thing you need to take care of is that many money market funds have a minimum investment amount beyond our reach – it is better not to go for these funds unless you really have that amount to invest.

Conclusion

So this was the article in which we discussed some quality money market funds. If there are some queries left behind which have been unanswered in this article, feel free to ask us your questions in the comments.

Best Low-Risk Investment Options

There are many low-risk investment options available today. But before you can choose the best one, you need to know what you’re looking for. An investment is taxed in your hands and it can have a high return or bring a loss to your capital. You will realize that there are various risks involved in investing and here you will read the best low-risk investment options that give you better control over your money.

One of the world’s hardest jobs is making money from money. Investment is one of the best ways out there, which can literally do the same thing, i.e., make money from money. In today’s context, we have uncountable ways of investment, from age-old fixed deposits to the modern way of investment – crypto.

Not every way of investment path results in the same rate of returns. In most cases, the investment path with the least risk results in the production of the least returns, while investment ideas that include the most risk can give you way more returns.

The statement described above has been proved, and crypto is a vivid example. But, for several weeks now, the market is not as good as it should be. Inflation has hit the global market and the US market as well. The US market has fallen on its face unexpectedly. Currently, Dow Jones, the stock-market index, is down compared to what it was at the year-opening by almost 20%. Investors are continuing to lose money amid volatility.

As someone who doesn’t want to take this risk or will retire soon, it is better to protect their capital instead of investing and losing it. Here are the best ways of investing with the least risk.

Best Low-Risk Investment Options 2022

  • Savings Account
  • Fixed Deposits
  • Bonds
  • Mutual Fund
  • Dividend-Paying Stocks

Let’s dive into detail.

Savings Account: Best Low-Risk Investment Option

A savings bank account has always been the best option for ultra-low risk seekers to invest their money & get a low amount of returns over a certain period. A savings bank account is one of those investment options that offer the best liquidity.

However, suppose you calculate the inflation of the current time. In that case, it turns out that the savings account generally lowers the invested amount if the ongoing inflations are redacted from the interest rate. It is included in this list as most savings bank accounts are regulated under strict rules by the government.

Fixed Deposits: Low-Risk Investment Option

Suppose some investment options continue to offer a certain percentage of interest on invested capital for longer. In that case, fixed deposits are the best options out there.

Why choose FD?

The best fact about fixed deposits is that the interest rate of FDs is between banks’ interest rate for savings bank accounts & stocks or ETFs. FDs include the best features of savings bank accounts (i.e., security of capital) & stocks (i.e., better returns). Considering the current inflation scenario, it can be concluded that keeping your capital in FDs will result in very little returns on your invested amount.

Bonds

If you are looking for some way to grow your money, which is used by retail investors like you and me and big Asset Management Companies, nothing can be a better option than bonds. There are several types of bonds in which you can invest to earn a more rate of returns than even FDs.

Treasury Bonds

Treasure bonds are security bonds that are issued by the central bank of the US and are fully backed by the government. It can also be a good source of annual income as the interest on the invested capital is paid twice a year. The main problem with these treasury bonds is that the maturity period for Treasury bonds is very long (20 years or even 30 years in some cases) & that’s why aged people don’t opt to go for treasury bonds.

Corporate Bonds

There are two types of bonds. The first one, which we have already discussed earlier, is issued by the government while corporate companies issue corporate bonds. In this case, you are the lender, and this bond creates a deal between you and the company. The company borrows money from you, and that’s why it pays you the interest in return.

Considering the rate of reruns, corporate bonds beat government-backed treasury bonds. But, the security is undoubtedly better in treasury bonds.

Mutual Fund

Now the inclusion of mutual funds in the list of ‘Best Low-Risk Investment Options’ may sound somewhat awkward, but here it is to be remembered that there are not just one or two categories of mutual funds to invest in.

The first factor which makes mutual fund investment less risky than stocks is that in mutual funds, your money is operated by an expert. Well, that’s not what gives you the assurity that you will never lose your money by investing it in mutual funds. In fact, history has also proved that equity mutual funds have underperformed compared to equity stocks randomly selected by investors with no prior experience.

Now let’s talk about something totally different from equity funds and involves low risk. A debt fund is one such kind of mutual fund which includes lesser risk. In debt funds, your investment is your money, and the asset manager uses the collected capital and pays debt to banks / corporate houses.

As these organizations have taken your money as debt, they are liable to pay you interest for using your money. That’s why the returns of debt mutual funds are almost certain.

Dividend-Paying Stocks

If you want to stick to stock and take a bit more risk by investing in equity stocks and still want to take low risk, dividend-paying stocks are considered among the best stocks to give you at-least dividends even when the stock market is falling.

Before buying a dividend-paying stock, check whether the stock has been giving dividends a number of times in a year or not. It is also extremely necessary to check the company’s finances and do a basic fundamental analysis of the company to invest in it.

Why Should We Choose Dividend-Paying Stocks As Best Low-Risk Investment Options?

Dividend-paying stocks try to offer their shareholders a part of their income as dividends, regardless of the action in their stock price. So if you have some quality dividend stocks in your portfolio while there is a severe condition going on in the market, you can still earn a small amount of money in the form of dividends.

Conclusion

So these are the best methods to invest in the current situation when the stock market is badly affected by several internal and external factors. We have made a list keeping in mind the need to gain your money, as well as the need to protect your money.

The list has been made in such a way that we have included the lowest risk investment option at the beginning, and the risk factor has just increased as the list has been processed. You can comment on your views using the comments feature if you have additional queries regarding any investment ideas we have listed here.

How to Build an Investment Portfolio?

This is a complete guide on how to build an investment portfolio. This can be done by beginners and more advanced investors. This guide teaches you about various investment vehicles in which you could invest your money.

Difference between long term wealth creation & short term wealth creation

While quick profits are considered a bit riskier, if you are not a professional, there is very little chance that you will remain consistent with profits. If you follow the process described above, there will be fewer chances to earn profits. 

But, in the longer run, people who invest in form long term make a massive amount of profits from their assets like Stocks, Mutual Funds, Gold, Bonds, etc. When we talk about investment portfolios, we generally talk about long-term wealth creation.  But there is no guarantee that you will make profits in the longer run. To get expected profits in the longer run, you must have a great investment portfolio.
 
The way of creating a good investment portfolio is not an easy task. You should have knowledge of various types of investment fields, not only limited to bank FDs. Plus, you do need to diversify it in order to manage the risk of investment and generate a probable good return. 

So, now let’s start with how you can make a significant investment portfolio with proper risk management and get the most out of your investment. I hope that as you have searched for how to build an investment portfolio, you should know what a portfolio is. That’sThat’s why we are not going to explore the theoretical definition of a portfolio. 

The first question that appears in our mind when we talk about creating a good portfolio is that – 

How many types of holdings should you have in your portfolio? 

Every investor should take care of some facts while investing. One of such facts is portfolio diversification. 

What is portfolio diversification? 

Different kinds of investment options have their advantages and their own disadvantages too. To take the best out of all investment options, we should invest our wealth in different kinds of investment options. This enables us to earn a good amount of returns and also helps us to minimize the risk of wealth loss. 

Diversification has great benefits, and the great investors also advise us to diversify our portfolio. But what is this important? Let’sLet’s understand the necessity of diversification of portfolio through some casual stories. Older people invested a lion’slion’s share of their money in just one type of investment asset. For older people, this asset mainly belonged to fixed deposits.

But, this way of investing has some faults. First of all, in fixed deposits, we don’t get a good amount of return like stocks or bonds. Data tells that the stock market’s average return is between 7-10% per year, whereas a fixed deposit only earns you 1-2% interest per year.
 
So by getting convinced that the stocks market usually generates comparatively better returns than fixed deposits, you may want to invest all your capital (money) in the stock market. Remember the 2020 stock market crash due to Covid – 19? Almost every stock went down by 10-15% in the time span of less than a week. Though the stock market usually generates a good return, the stock market’s main downside is its volatility. 

How should you diversity your portfolios? 

  1. Equity Stock market
  2. Mutual funds
  3. Real estate & properties
  4. Gold
  5. Cash & fixed deposit
  6. Bonds 

These are the most popular way of investment; still, you can invest in other investment options too.

Risk management in portfolio diversification:

When you invest in stocks or mutual funds, there is always a risk of money. As an investor, we should always take approaches that minimize the risk. This approach is called risk management, and we should always follow this risk management approach in our volatile investments. 

It is certain that we all don’t have equal wealth and a similar mindset for taking risks. It is up to you how much risk you want to take. If you take more risks, you will generate more returns, But there remains the possibility of losing money too. 

One of the factors you should take care of while managing your risk is your age. Because a younger person has many dreams to fulfill, a younger person can go for riskier investment options than people planning to retire or already retired persons. 

As a younger person, you may go for high-risk investment options if you have the power of recovering your losses through your wealth, whereas as an aged person, you should go for low-risk investment options.
 
Your salary directly controls your risk management. If you earn a decent amount of money from your job or business, you may take a greater risk if you have the confidence to recover any loss that happens within a very few months. 

How to design your investment portfolios? 

We all already have some of our investments in different kinds of fields. To build a perfect investment portfolio, you don’t need to withdraw all your money from that investment. Especially if that investment is in a bond or fixed deposit, where there is a certain period to stay invested, you will face some penalty if you withdraw your money quickly. 

It is foolishness to give a start to your investment journey all of a sudden. 

First of all, you have to plan the following things –

  1. How long should you continue investing your money?
  2. How long your money will stay invested? 

If you have a lifelong for your investment, you should start a SIP in stocks or mutual funds. SIPs build an excellent investment habit. Investment in any field gives you the most when you stay invested for a longer period of time. If you invest in stocks or Mutual Funds, you will get the advantage of compounding. And it will be the duty of compounding to increase your money. 

Best practice in making a portfolio: 

The best thing that we can suggest to you to build the best portfolio is to do your own research. There are many popular analysis toots known as various types of names like advisor, tickers. These kinds of tools have various types of information about all the stocks with many important financial ratios such as PE ratio, PB ratio, Debt to equity ratio. They also have news about the socks.
 
We can use these kinds of tools to analyze stocks, mutual funds and find out good stocks to invest in. Whether you are a professional in the market or just a beginner, you can use tools to do your own research and find out quality stocks to hold for the long run. But if you don’t want to use any such kind of tools, you wish you could read the financial statements of companies you are interested in investing in.

 These are the – Things to look at before investing in a company: 

  1. Sales and profit growth
  2. Stock price

Sales and profit growth

The best trick the track a company’s performance is to see the growth in its sales and profit. It tells us about how the company is performing and how it is being operated. 

Stock price

We can use a company’s stock price as the best indicator to analyze how investors trust the company.
 Carefully analyze the stock price of the company. If everything is going normal, still the stock price has not gone upward, there may be some issues in the company’s operations. 

Other things you can look out for are –

  • EBITDA 
  • Cash flow
  • Revenue growth
  • Net worth 
Should I invest my money in the stock market or fixed deposit?

It’s totally on you where you want to invest your money. If you want to take risks to get a better return, you can go for the stock market. But if you don’t want to take any kind of risk and want to earn a fixed amount of money in a certain period, you should look to make your investment in bank fixed deposits. 

For how much time should I hold my asset?

We advise you to hold your assets as long as possible. The more time you will stay invested, the more compounding it will grow.

Conclusion

As we always advise you that you should pick quality stocks and hold them for several years to get good returns. For that, you will need to make a very powerful investment portfolio. In this article, we have tried to cove the things you should take care of while building an investment portfolio. 

This was a beginner-friendly guide for entering the investing world. We have covered topics like how to diversify your portfolio, different kinds of assets you should have in your portfolio, the necessity of diversifications, etc.
 
We hope that our advice you make you a better investor in the future

How To Choose A Financial Advisor

If you searching for a financial advisor then here, we are going to show you how how to choose a financial advisor for you without any hassle, so let’s start.

There are two types of people in the stock market, not only in the stock market but also in any field. The first one is they who make mistakes and learn from mistakes, and the other one is they who learn from others’ mistakes and don’t repeat the same mistake again.

Obviously, the second type of person is the most intelligent one. One of the best ways to become a member of the second category is to listen to others’ advice who have been in the market for a long time whom we call financial advisors.

So in this article, we will discuss how you can choose the best financial advisor for you. We will try to cover the most important choices where one needs a financial advisor, how to be careful and what precautions to take when you are going to choose the person who will guide you to manage your wealth.

But, before starting the article, let’s first discuss a common myth that pops up in the mind of most people when they hear the name of a financial advisor. People believe that a financial advisor is only for the upper-class society who have a lot of money. But This idea is not at all true.

If you are just an average salaried person, you can still talk to a financial advisor. Let’s understand the point that a financial advisor will not earn you money, but they will show you the path following which you can spend or save in a more guided way.

They will also guide you to achieve your financial goals in a more easy way and in a faster time. So it is not that only rich people should have financial advisors, a normal person can also have one, but the intention should be to become a better finance manager for yourself.

Decide What Part of Your Financial Life You Need Help With

Our life has versatile parts. Many people who are currently reading this article may not be engaged in just one type of work. Similarly, all the people here will not have the same financial condition and financial goals. That’s why it is the duty of every individual to decide which part of our financial life they need help with.

Similarly, one who earns thousands of dollars every month should seek another category of advice (like how they can save more from their earnings) than one who earns hundreds of dollars each month (unlike the previous types of people they tend to ask questions like how they can efficiently handle the earnings).

The advice one needs when he is in debt and free of all kinds of debt is different. That’s why it is advised to clarify your doubts about the sections you need help with.

Learn About the Different Types of Financial Advisors

As we have gained knowledge On the topics you should prepare before choosing any financial advisor, let’s talk about the next step. The next step you should follow is choosing a good financial advisor. To choose a good financial advisor, you need to know about the different types of financial advisors.

Not all financial advisors do the same work, and that’s why it is important. They can be classified according to their pay rate or according to their work type.

Types of financial advisors:

  • Free only financial advisor
  • Advisors who earn commission
  • Registered Investment Advisors

Let’s dive into detail.

Free only financial advisor

Free only financial advisors are the financial advisers who we do not directly pay. They are paid indirectly by the platforms we use. A great example of this platform may be the stockbroker you are using.

In the article on how to choose the best stock broker, We discussed the hidden charges that some brokerage firms charge as an annual fee for the best stockbroker. Many brokers do offer a free financial advisor, and in most cases, the financial advisor’s fees get included in the annual fees along with other charges. Thus, you can get a free financial advisor at a comparatively lower charge with your broker.

So, next time you are going to choose a new stockbroker, look at whether they are providing free financial advisors with these charges.

Problem with a free financial advisor

The main problem with free financial advisors is that they are not available publicly. As just one financial advisor is dedicated to many people, it sometimes becomes hard to reach them when we need any kind of financial help. Still, it is seen that people often get helped by them as they are appointed to do this very work.

Advisors who earn commission

There is also another type of financial advisor who earns a commission for their advice. Now you might wonder how they can earn commission just by giving advice. Advisors who work for insurance companies may be the best out there to describe it.

These types of advisors may not always be totally trustworthy, so you can not expect to get the perfect piece of information or guidance from these types of advisors. Commission earning advisors always force people to go for the products or subscribe to their products so they can earn a percentage of money from them. After all, they are the salesperson of the very company.

Though it is not that you will not get anything beneficial from them, we can’t totally ignore their advice. The best practice will be to analyze their advice and make the most of it.

For example, while choosing any Insurance Company, be sure to ask the advisor some questions regarding:

  • Period of premium.
  • Expected annual returns (if any).
  • Maximum and minimum-maximum and minimum coverage in different scenarios etc.

Registered Investment Advisors

Here comes the most important type of Advisors – Registered Investment Advisors known as RIA. Usually, registered investment Advisors are not a type of individual advisors; instead, some advisory companies are referred to as RIAs and certified financial planners.

Registered investment advisors are meant by us when we ask about investment advisors. Advisors who earn a commission for their advisors, these type advisors are great trustworthy.

As we can understand from the name, these types of financial advisors mainly focus on the investment section allowing you to invest your hard-earned money more effectively. It doesn’t mean that they won’t guide you with other financial problems (like high debt), but they mainly focus on investment planning and its effective execution.

There are two types of registered investment advisors classified according to their pay rate. One is free, and one is paid. As discussed above in this article, the charges of free investment advisors are included in the service charge of the organization that is offering them to their consumers.

The paid are the ones who are dedicated to this very work, and they advise the common people about investing to earn a probable greater amount of profits compared to the benchmark (for example, the index (NASDAQ / DOW JONES).

Certified financial planners don’t just cover the stock market. Instead, they also have a great extent of knowledge on other investment options like real estate, gold, bonds, etc. These advisors teach us how to diversify our portfolio to face the least amount of loss and the maximum amount of positive returns. Often certified financial planners don’t suggest you invest in just one type of investment option.

Decide How Much You Can Pay Your Financial Advisor

Before looking for the answer to the question – How to choose a financial advisor ?’ – you should keep in mind the fact that an investment advisor can cost. It doesn’t need to be said that not everyone earns the same amount of money. That’s why everyone doesn’t have financial needs. So this means that we should have a different budget for financial planning, which includes how much we can pay to our financial advisor.

If you are getting a free investment advisor and the tips you are getting are working for you, it is fine. But paid investment advisors do cost much; that’s why it isn’t possible for all of us to put effort into a top-class investment advisor.

Research Financial Advisors

Last, of all, there are numerous investment advisors in the United States only. Without proper data, we cannot conclude whether everybody’s an expert or not. That’s why to like how we analyzed stocks as Mutual Funds; there are many sites on the internet with which you can find and connect to trustworthy investment advisers.

Some of them are – 1) Alliance of Comprehensive Planners, 2) The National Association of Personal Financial Advisors, 3) Garrett Planning Network, etc. You can go to the site of those companies to get the primary knowledge about the advisors and their expected fees. All those aforesaid companies have a good history of providing trusted financial advisors.

Some bonus Advisors to follow while choosing any investment Advisors

Is it hard to judge any person if we only talk to them directly, especially Financial Advisors, while choosing them, you should definitely have a direct chat with them?

While conversing, you can ask them some questions that will help you get a rough idea about their expertise in their respective fields. From this conversation, you can also overall judge the person whom you are going to give the duty to advise you on how effectively you can manage your wealth.

Conclusion

So this was all about the basics of how to choose a financial advisor. I hope you have got to know about a fair amount of things that you should keep in mind before choosing any financial advisor. We advise you to apply your common intelligence even after listening to your financial advisor before taking a major financial decision.

Webull Vs Robinhood Comparison 2022

We are going to tell you a detailed comparison of Webull Vs Robinhood along with their pros and cons in this article so that you can start your trading and investment journey by selecting any of them at your convenience.

There are a few things that you should keep in mind while starting the journey of trading or investing. Long ago in the past time when there was no concept of the internet or digital medium, people used to do trading physically, but a couple of decades ago, since one internet was involved and trading & investing were devitalized, people are doing trading with the help of various web platforms which offers to invest in the stock market.

Now we have online brokers with which we trade or invest in the stock market. Webull and Robinhood are two of them. Webull and Rohinhood are two of the most popular trading platforms in the United States.

So if you are a beginner and haven’t entered the market or if you are using any other trading platform and want to shift to those aforementioned platforms because of their own benefits, you might want to know which of these platforms are better to trade, keep reading the post because, in this post, I am going to discuss which is better among Webull and Robinhood.

Let’s first discuss some

Common things and features are available in both Webull and Robinhood

First of all, these two are online broker platforms that have their own web and mobile platform. This means that you can do trading using both their website and iOS and Android app.

The second similarity between them is that both of these platforms offer trading with zero commission. Unlike other apps/platforms where you have to count commission or, better to say, brokerage for every trade that is executed, you don’t need to pay any commission for trading.

You can trade common stocks and exchange-traded funds (aka – ETF). They even offer commission-free options trading also. This is why people choose these two platforms rather than many platforms that charge commissions for trading.

The world is changing, and millions of people are interested in investing in cryptocurrency. So how good it would be if your stock borking app had the option to trade cryptocurrency? Both of these platforms, which we are talking about, allow you to trade in cryptocurrency.

Both of these brokers are good trading platforms to start the stock market journey with. As both Webull and Robinhood offer a clean interface of stocks, that’s why it becomes easy to start for a beginner. The navigation of all these platforms is easy, and both of these have commonly required features.

None of these platforms requires any minimum balance to invest in stocks which is obviously a very positive side for the beginner.

New investors don’t have enough capital to buy even 1 unit of shares like NVR Amazon. That’s why brokers have come up with new ideas that let users invest in that stock without even purchasing the full 1 unit stack. This way of investing is called fractional investing. Both of these apps let their investors invest in share infractions.

Now, let’s come to the common downside of these apps-

While trading, it becomes important to track the market trend to set the bid or ask price. Market depth is the most and probably the only way to track the market trend of trailers at a point in time. But both in Webull and Robinhood, market depth is not free of cost. To see the market depth, you have to pay an additional fee, though when you first sign up for these platforms, they offer you this service for free.

To do day trading, you will need to give a minimum of $25,000 in your trading account, and if you want to get the margin feature, you will need to have more than $2000 in the wallet.

As we have learned some popular similarities between Webull and Robinhood, let’s talk about Webull Vs Robinhood.

Differences between Webull and Robinhood

A great difference between Webull and Robinhood is that Webull offers an auto stock screener with which you can get much information about a stock which will surely help you select stocks for investments.

Now you may wonder –

What screener is –

The screener contains certain information about certain stocks from which we can know the stock’s fundamentals. Not only the fundamentals but also if we want to know the technicals of the stocks, for example, some trading indicator that helps determine the stock’s upcoming movement, the screener shows them very cleanly.

Webull gives you a stock screen powered by robot intelligence, but in Robinhood, you will not get it.

In bear market people, you usually don’t want to buy stocks; rather, they want to sell some stocks for the short term. Many people do short-term selling on an intraday basis. If you would also like to do short storm selling, we advise you to use Webull because Webull offers you to sell stocks for the short term, but Robinhood doesn’t. However, you will need to have at least the marginal money to sell short-term stocks in Webull.

For various kinds of reasons, customer needs to communicate with their broker. In our experience, we have got better customer support from Webull compared to Robinhood. For the exact hours of support, you may visit the websites of those respective companies.

If you are planning to invest for retirement, you should not go with Robinhood because Robinhood does not have any retirement planning scheme or option, whereas Webull offers various kinds of retirement plans.

Robinhood has its own advantages. The advantage is in its cash management system. You can even earn interest on the money that is sitting on your Robinhood account because it will create a savings account whenever you create an account in it. You will get features like a debit card and even get a credit card if you have enough account balance.

We are talking about fractional investing and why you don’t have to buy 1 unit of the stock to invest in it. Robinhood offers a variety of stocks for fractional investment, whereas Webull has few stocks & ETFs in this case.

As we talked about Webull vs Robinhood, it would be better to discuss which app is better for beginners. Both of these apps are for intermediate-level people who know some good facts about the market, but though beginners can start with Webull, we would not live to recommend Robinhood to the absolute beginners.

Now, let’s quickly note some pros and cons of both Webull & Robinhood-

Robinhood-

Pros:

  1. Interest can be earned even on the account balance.
  2. Some banking-like features are also available.
  3. Cryptocurrency trading.

Cons:

  1. Not ideal for getting started with.
  2. Customer care could be better.

Webull –

Pros:

  1. Comparatively better for beginners to get started with.
  2. Easy to navigate and explore.
  3. Short-term selling available.

Cons:

  1. Lesser options for fractional investing.

Why would you choose Webull?

If you want to enter the stock market for full-time trading or investing, you should start with Webull because Webull provides a much better interface for beginners and provides the most commonly required tools for intermediate and professional investors. Many professional investors use this platform for investment.

If you are planning to invest for retirement, Webull may be the best option in the view of Webull vs Robinhood.

Why would you choose Robinhood?

Robinhood is mostly recommended for investors who have some experience in the market. Robinhood is even better for professional investors compared to Webull. Though we have discussed it previously, Robinhood has a good cash management system, which is why investors choose Robinhood.

An important message:

Here we have discussed two of the most popular investment apps. Both of these platforms have their own advantages and disadvantages, which you may have learned from this article. It is on you which investing platform you will choose. If you want, you can use both Webull & Robinhood.

Conclusion of Webull Vs Robinhood

In this article, we have tried to discuss all the possible facts, including the pros and cons of Webull and Robinhood. We think that this article will help you choose the better investment app among these two. If you have any other questions, you may ask us using the comments section. We hope that the clash of Webull vs Robinhood has got clear now.

Best Investment Apps 2022 With Pros And Cons

In this post I will show you the best investment apps 2022, so without any further delay let’s start.

Whatever work we are doing, we need to choose the best tool to do the work to get the best result. Without the best tool, we cannot even expect the best result. Likewise, in investment also when you are making any investment, it is extremely important to choose a good investment app that will allow you to make your investment with the least hassle.

In trading, choosing the best investment app should be on the top of the priority list. In fact, If you want to become a trader, you need to be very careful to choose the best investment compared to an investor. But before choosing any investment app, we need to take care of a few things, so let’s talk about them first:

Things to consider before choosing any investment app

  • Charges
  • Advanced options
  • Cryptocurrency trading

Let’s dive into detail.

Charges

Before choosing any investment app, you should check for the charges of the app or platform. Investment platforms usually show that they have negligible charges, but after creating an account and doing some trades, people realise the hidden charges on the platform, and most of the people who get attracted by the lower prices tend to leave the platform/app. 

That’s why before choosing any investment platform, you should always look for the hidden charges of the platform.

Advanced options

Trading and Investments and now not limited to only manual researches. Technology has advanced, and in the meantime, many great technologies have been developed which tracks the market and works like a robot to execute trade faster and to give a potentially big gain. This type of app reduces human effort and make the investment process easier.

Cryptocurrency trading

Cryptocurrency is the future – this is the quote we continuously have been hearing for months. Why not? In recent months the value of the cryptocurrency has boomed, and that’s why millions of investors are showing interest to invest in cryptocurrency to get a massive amount of written in a very short period of time. taking care of that, most apps and platforms are integrating options to trade and invest in cryptocurrency in their traditional investing apps.

If you are a person interested in cryptocurrency and want to trade cryptocurrency, you should check whether your investment app supports cryptocurrency.

Now that we have understood some basic things that you should take care of while choosing your investment as let’s talk about some best investment apps of the United States to get started investing with:

  1. Betterment
  2. Fidelity Spire
  3. E*TRADE
  4. Binance.US

Let’s dive into detail.

1. Betterment App

The name of the app suits it. Betterment is one of the most popular apps for investing in the United States.

In the betterment app, there is a section of ETF where you can find an excellent list of portfolios managed by professional investors. If invested for the long term, this can give you good returns.

One of the best features of betterment that makes it one of the best picks for investing is its Robo advising feature. For those who don’t know what Robo investing is – Robo advising is an advanced technology that uses its algorithm and artificial computing intelligence to execute trades – the best part about Robo investing is that it is a fully automated process.

The Robo investing facility creates portfolios protected from all kinds of weather – means it can deliver good performance instead of ups and downs in the market.

The platform charges some charges for the transactions made with it. Currently, it charges 0.25% of the invested amount per year. While this amount seems t be a fair amount, this amount that will be wasted for big investing (e.g., $10000) is about $ 25.

Well, to be frank, it is a little bit more than most of the other investing platforms. For example, Acorns charges about 12$ per year. 

Pros:

  1. Contains a special Robo-advisory feature.
  2. Custom portfolios based on life goals can be created.

Cons:

  1. It charges a bit more than most other investing platforms.

2. Fidelity Spire Investment App

If you want a brand new app for investing with exclusively new features, you can try Fidelity Spire. Fidelity Spire is a beginner-friendly app. If you are an absolute beginner in trading/investing, we strongly advise you to go with Fidelity Spire rather than choosing any other apps made for professionals. Fidelity Spire has a simple UI.

The best thing about Fidelity Spire is that, unlike the previous one, it does not charge any annual fees regardless of the amount you invest in the app on a monthly/yearly basis.

Another great thing about the app is that you can even buy shares infractions with the Fidelity Spire app/platform. This means that you don’t have to buy a whole share. For example, currently, the share price of the company Alphabet is trading at 2789 dollars. With this app, you don’t have to pay the whole amount at Fidelity Spire; you can even start investing in the Alphabet share with a lesser amount.

For all these reasons, Fidelity Spire is one of the best apps for beginners. But still, Fidelity Spire is good for professionals too. In short, people of all levels can use the app for trading and investing.

Pros:

  1. Perfect beginner-friendly app.
  2. It charges a very little charge compared to other apps.

Cons:

  1. No feature for cryptocurrency trading.

3. E*TRADE Best investment App For Beginners

E*TRADE is an app particularly made for beginners who are interested in trading. So to kick off your trading journey as a beginner, you can go with E*TRADE.

E*TRADE Has a good review on major app downloading platforms like Apple Store and Google Play Store. Some data shows that it has got the prestigious platform of being one of the best broking apps for beginners. Though the app is best for traders, investors can also use it to start their investing journey.

As this app is made taking care of its beginner users, there are plenty of definitions of many terms related to the stock market available in the app.

With this app, you can open many types of accounts like IRAs. But if you plan to invest for a longer-term suppose for your child’s education, this app does not support 529 types of accounts.

Like the previous app, this app also has some automatic Robo services like premade portfolios.

Pros:

  1. Has lower charges.
  2. Best for beginners.

Cons:

  1. It does not allow to trade in cryptocurrency.
  2. This app is not fully recommended to investors who want to invest in child education in the longer run.

4. Binance.US is One of The Best investment Apps

Binance.US is one of the most popular cryptocurrency apps in the United States. If you are a trader or investor who wants to participate in the rally of Bitcoin and other cryptocurrencies, you can use this popular platform to trade cryptocurrencies.

The main problem with other trading apps supporting cryptocurrency trading is that they mainly focus on the stock market. That is why we don’t find enough range of cryptocurrency to trade in the app. But if you want only a cryptocurrency trading app and don’t want to focus on Wall Street, you should choose a trading app that is purely built to trade cryptocurrency.

Binance.US is one of the fewest cryptocurrencies platforms, and it is a full cryptocurrency trading app.

Binance.US charges comparatively lower fees while executing a trade than other cryptocurrency trading platforms.

Pros:

  1. An app that is purely made to trade cryptocurrency.
  2. Comparatively low brokerage and other charges.

Cons:

  1. The main app was banned in the United States in 2019.

FAQ



What should be the main priority while choosing any investment app?


According to us, while choosing an investment app, always look for the reviews of other people who have used the platform.

How to open an account in any investment app?


Nowadays, opening an account in any investment app has become much easier. All you need to do is download the app on your mobile phone, follow the onscreen guide and submit some necessary documents required to open a trading account. You need to submit some basic information like your name, date of birth, annual income, etc. This list of documents may contain some identity proofs.

Is there any minimum balance required to invest?

Well, it depends on the platform that you are using. Currently, most platforms do not require any account balance to invest. But you will require a good amount of money to invest in stocks with a platform that does not support fractional stock buying.

Conclusion

In this article, we have tried to discuss some best investment apps that you should use to get started with your investment journey. But we do advise you to do your research before choosing any investment app. We would also like to tell you to read other people’s reviews who have used that particular investment app to trade or invest.

https://www.youtube.com/watch?v=cjjDYJ4SR2g