Good Investment Portfolio

Company must repay any funds towards the shareholders. However, the shareholders, does not have to pay anything. Shareholders take a risk whether the company runs well or in bad times, he will continue to hold shares in the hope that things will get better. Bondholders on the other side does not care about the bad or good times in a company; they just want their investment be paid back plus the deviden. In deciding whether to invest in share in a company or bonds, you should note that the bond’s return is fixed, while the share’s return may fluctuate and are not guaranteed. You should also note that in case a company go bankrupt, the bondholders are paid first and the shareholders are the last.

A good investment portfolio includes both stocks and bonds. Investors like do investment in stocks for their business. If you are an investor only interested in short-term gains, then you should have more bond than stocks in your investment portfolio. The bonds will provide you with a consistent earnings and in the case of market fluctuation, they can offer a great cushion. Now stocks are available in the stock market. In there, people can freely buy stocks, but there are any requirements as well. However, if you want to invest your money for more longer than 10 years, then your investment portfolio should has more stocks as the companies tend to increase the value in the long-term.

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