Stock market basics: Here’s how to invest in shares…

Julie Brownlee, Fsp Invest, 30 Jan. 2015

Tags: shares, how to invest in shares, stock broker, stock market, unit trusts, investing in shares,

If you want to invest in the stock market, you have a couple of options open to you.

One route involves going through a stock broker. The other involves going through a fund manager.

Let’s take a closer look…

How to invest in shares through a stock broker

If you want to build a portfolio of individual shares, you’ll need a stock broker.

To do this, you have to open an account with a stock broker. Once you’ve done this and deposited funds, you’ll give him instructions on what shares to buy and how many you’d like.

To invest in shares this way, you’ll need a reasonable sum of money to start off and continue to invest so you build up a decent sized portfolio.

You’ll need a minimum of around R10,000 to start off. And due to the fees and commissions involved, it’s not worthwhile investing any less than R5,000 in each share.

To build a diversified portfolio, you’re looking to buy shares in around ten to 20 companies, in different sectors and industries.

If the idea of picking shares doesn’t appeal or you don’t have a large amount of money to start investing with, unit trusts are perhaps better suited to you…

How to invest in shares through unit trusts

You can buy units in unit trusts through fund managers and banks.

When you buy into a unit trust, you gain instant diversification as the fund will contain exposure to many different shares. You can opt for a unit trust that concentrates on the biggest shares on the stock market, for example, or particular sectors, like mining.

What’s great about unit trusts is that you can invest in them from a few hundred rand a month. Through setting up a debit order you can gradually invest and build up your holding over time.

You can also invest with a lump sum.

You can easily find out more about different unit trusts online. Each unit trust has a fact sheet which details what shares it invests in, how risky the investments are and its performance over recent years.

So there you have it, how to invest in shares.

*********** Recommended Product ************

How to ‘intercept’ big company news – BEFORE it hits the headlines!

Forget earnings reports, technical trends and economic data.

The ONLY thing that always makes stocks go shooting up is a big news story.

Well, as unbelievable as this sounds, here’s a simple way you could cash in on the city’s biggest news stories weeks – sometimes months – before they appear in any mainstream newspaper.

In fact, click here and discover three stocks you can ‘intercept’ right now for potential gains ranging from a quick 54% right up to 129%!


Related QA

kavesh.maharaj.73 asked:
Hi Josh Quantum wants to buy back shares from shall investors at what I think is a low price of around R3.86. You tipped the share in February [read more]
Published at 14 Mar. 2018 in: Investing Real wealth 5 answers
elizastrydom asked:
Hi Timon I am interested in registering for your Red Hot Storm Trader service. I am already a Red Hot Penny Shares investor. My question is [read more]
Published at 28 Feb. 2018 in: Investing Trading platform and broker 1 Answer
ManuE asked:
I have an interest in investing in Bitcoin, I just don't know how. If I buy Bitcoin with R15 000, how much can make (Return On Investment)? [read more]
Published at 25 Feb. 2018 in: Investing Investment 1 Answer
rickey101ter asked:
Good day gentlemen I am a subscriber of various of your products e.g. the above mentioned two and TWS, but I am not happy with the services I [read more]
Published at 07 Feb. 2018 in: Investing Investing 2 answers
bongani.zwane.127 asked:
Hi Francois, I want to invest in ETF for my kids educational funds. I would like to find out which ETF securities can I invest into for a period [read more]
Published at 01 Feb. 2018 in: Investing 1 Answer

Related articles:




Youtube Twitter Facebook

Connect with us:    

  • Accelerated Investor