Wannabe a wolf? Fol­low these steps to in­vest­ing wisely in tech

Australian T3 - - START-UP BOOM -

Can you af­ford to put your money at risk? In­vest­ing in tech, es­pe­cially start-ups, is very high risk. The re­turns could be enor­mous, but losses could wipe out your sav­ings.

Don’t bet it all on one com­pany. Try in­vest­ment funds, which spread your cash across 40 or 50 shares, di­ver­si­fy­ing your hold­ings across a more var­ied range of sec­tors.

The tech sec­tor should only form a small part of your port­fo­lio. Shares from other in­dus­tries will then bal­ance out losses if tech floun­ders. Add property funds and bonds, too.

In­vest small and on a monthly ba­sis. This is called “dol­lar­cost av­er­ag­ing” and will help you smooth out any risk and avoid in­vest­ing when a mar­ket’s reach­ing its peak.

Buy­ing and sell­ing shares too fre­quently is a quick way to erode the gains you’ve made by pay­ing fees to bro­kers. Avoid in­cur­ring trad­ing charges as much as pos­si­ble.

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