1/27/2008

Investment

After purchasing my house, I start to consider putting some money into stocks or funds. Because the interest rate of bank deposit account is too low and the current inflation rate is about 4.5%, it seems investing money in stock or fund market is a better choice for a long time.
As usual, I learned a basic knowledge of investment by reading before I start putting money in stocks or funds. I spent about two weeks reading some books and articles published in web sites. Although there are a lot of complicated details on how to invest, one sentence can conclude these details: "investment with high risk yields high return". For the beginner, like me, index fund with low cost and low turnover is a good choice. With more experience, we can have more options in investment. But no matter how experienced we are, we must have a right plan on investment and stick to the plan.

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