From savings account to share portfolio

AAPAAP
With savings accounts yielding record low interest earnings, it might be worth investing in shares.
Camera IconWith savings accounts yielding record low interest earnings, it might be worth investing in shares. Credit: AAP

Research shows Australians are moving money out of traditional savings accounts and into investments. Here are some key tips for online share trading:

READ THE NEWS

It's important to stay up-to-date with the broader economy and learn how major events such as national elections impact the share price of various companies.

RESEARCH

If you want to invest in a company, research as much as possible about it before making a final decision. It's a good idea to read annual reports and meeting minutes to learn what's in the pipe-line, and what changes will be made that could affect the share price.

BLUE CHIPS

This is a good strategy for people new to the share market, as blue-chip companies often have more stable returns, are less volatile and often pay dividends.

DIVERSIFY

Rather than investing all your money in one company, consider spreading it out across a few from different industries. Diversification will help lower risk and ensure you don't have all your eggs in one basket.

Advice provided by online comparison site Finder

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