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“The stock market is filled with individuals who know the price of everything, but the value of nothing.” (Philip Fisher).
The definition of portfolio income is income received from portfolio investment or paper asset investment. The income could come from local portfolio investment or foreign portfolio investment.
Example of portfolio income comes from portfolio investments such as shares, bonds, treasury notes, treasury bills, Bitcoins, Ethereum, Litecoin, Binance coin, Non-fungible tokens (NFTs), cryptocurrencies, mutual funds, fixed-term deposits, etc.
In today’s world, everybody is talking about getting multiple streams of income.
Portfolio income is a great source of multiple streams of income for many people.
Investment income from short-term, medium-term, and long-term portfolio investment yield profits for those who invest in them.
One way of getting rich without necessarily working physically is to invest in portfolio investment.
Getting rich is not using physical strength or working hard physically but being intellectually or mentally hardworking to get what you want.
Mere physical strength without financial intelligence will not get you much money. It will only exhaust and wear you out no sooner than you could imagine.
Financial literacy also teaches us that we should not only work for money and worship it but rather we should let money work for us and worship us.
Your money can only work for you when you are financially literate and financially intelligent.
In that case, you see money with your mind, not with your physical eyes.
Opportunities that are foreseen bring the money, and those who prepare for the opportunities grab them when they arrive.
To get good returns from portfolio investment just like any other investment, you need to understand the terrain or the sector. You need to learn more about portfolio investment in your country and foreign portfolio investment and how they operate and function.
Portfolio investment or paper assets are traded in a strong and strict regulated sector. Therefore experts work in that field.
Their activities are well organized and regulated by a government department vested with the powers of the country to regulate them.
Almost all portfolio investment assets deal with intermediaries or middlemen or brokers or agents.
The system is designed such that investors cannot get to go straightaway to start investments without passing through the intermediaries. Only licensed and recognized individuals or corporate agents are allowed to trade on the floor of such markets for their clients.
Some of the intermediaries are banks, investment houses, stock exchange brokers, and others.
To invest portfolio investment or paper assets you need to pass through one or more of the middle people to achieve your purpose.
Just walk to any private bank, stockbroker, investment house, or any fund management company and they would help you out.
To invest in government bonds, treasury notes or bills, or fixed-term deposits, you need to go through a bank either your private bank or through the central bank of your country.
To invest in mutual funds, unit trusts, real estate investment trusts, or any short, medium, or long-term funds you need to go through a fund management company or a bank, or an investment house to help you invest in it.
An example of portfolio income is to invest in shares or stocks. You need to use the services of a broker to help you invest in the stock exchange market.
The agents or brokers are licensed people or corporate entities that trade on the floor of stock exchange markets for their gains or on behalf of their clients.
Examples of some stock exchange markets are Ghana Stock Exchange (GSE), New York Stock Exchange (NYSE), the Tokyo Stock Exchange, London Stock Exchange, Johannesburg Stock Exchange (JSE), Nairobi Securities Exchange (NSE), and others.
Stock exchange markets are regulated by the securities and exchange commissions in most countries.
Many countries have their stock exchange markets for their citizens to trade portfolio investment assets or paper assets.
Other portfolio investment asset vehicles such as futures also have specialized markets for trading. Investors buy and sell on such markets.
Examples are New York Mercantile Exchange (NYMEX), the Chicago Mercantile Exchange (CME), etc.
In the USA futures markets are largely regulated by the commodities futures trading commission (CFTC) with futures contracts standardized by the exchange commission.
For one to be a good investor in portfolio investment assets or any type of investment for the long term, one needs to have education in portfolio investment or in that particular field.
Educate yourself very well in your chosen sector to know and understand the technicalities involved before you can become a good investor.
Of course, the experts are there to help you but they are also there for profits.
It is wise to have good appreciable knowledge in any area you want to put your money into.
To get a very high portfolio income, you need to be financially literate and financially intelligent in your chosen field.
You need to understand the frequent downward and upward movements of the prices of stocks to appreciate the market conditions and environment.
Therefore emotional intelligence is needed by every investor of portfolio investment or paper assets especially portfolio investment assets traded on stock exchanges.
Movements and fluctuations need to be understood so that emotions do not flare up when the market does not go your expected ways.
Warren Edward Buffet is an American Business Magnate and an expert reference point investor in portfolio investment of stock and he has been into it for so many years. He is known for value investing. You can learn from him.
To look for a trusted experienced professional investment advisor, look for an advisor, who is an investor too and would be interested in mutual benefits not only in your money.
If you go to just any brokers, who are the middlemen, they would advise you and charge you their fees. Many times the advisors do not even know much about the commodities that they advise you to invest in, they just want their fees.
Do not assume that anybody who trades on particular markets understands or knows the market.
Sometimes, the experts’ advice is wrong but they take their fees and go away.
If they know everything that well about the market, then why don’t they (brokers) become the richest in terms of portfolio income? They do not know the future; they only do predictions that could be true or false.
Robert Kiyosaki says that some brokers and many so-called investment advisors are not investors but traders interested in their commissions or fees without thinking about the future financial well-being of their clients.
You do not need to deal with such people. So do your research to find out trusted, experienced, and professional financial advisors, who are investors themselves. If not do not deal with them as such.
If they would not invest in a particular portfolio investment asset, then why would they want you to invest it? Keep searching till you get the best.
To invest in any products, you can do some research on them to get information on the issuers. Their financial reports, their track records, customer complaints, and compliance issues of that company before you invest in it.
It is also prudent to consider news from already existing investors if it’s an existing company. Get news about directors and managers behind that company and its activities.
Get to know how the company handles regulatory issues. Is it a regulatory-compliant company? Get to know the general public news about them. Get more pieces of information on any investment product before you invest in it.
You can turn a percentage of your monthly earned income into portfolio income where your money works for you, whilst you sleep. That could create another stream of income for you.
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