Investing for Beginners: What to Know Before Getting Started

For the uninitiated, the world of investing might seem a little daunting at first. The worst scenario is when you begin investing while the market is crashing. However, some smart investors make a lot of money even when the market crashes. While investing your money wisely is definitely not an easy thing to do, with proper research and due diligence, you should be able to invest wisely and eventually manage to create wealth. In case you were considering investing your money somewhere but didn’t exactly know where to begin, this post has got you covered. Our simple and easy beginner’s guide to investing will definitely give you the initial push towards the life of a successful investor. With these tips, you should be able to step confidently into the world of investing and start the process of wealth creation. If you put in the time and effort and play your cards right, you might even create generational wealth. Let’s get started.

Important Investing Tips for Beginners

1. Decide the kind of investor you want to be

Just like anything else in life, before you start investing, you must decide how you are going to go about it. There are different ways to get started. You can get a hedge fund manager or get your feet wet by passively investing in index funds through a robo advisor. Let’s find out about them in detail.

D.I.Y (Do it Yourself)

While low cost/discount brokerages don’t provide advisory services,they do tend to provide a lot of affordable trading guidelines through online resources like webinars, analyst reports, and market news. For a better commission, full-service brokers offer advice and trade on your behalf. This can actually be cost effective if you don’t trade frequently and need professional guidance.

Hire a Financial Advisor

A financial advisor will assess your risk tolerance and your investment goals and then build and execute an investment plan for you. But it’s not an accessible option for everyone. Typically you would like a minimum investment amount from $250K to $1M or more to get some attention from them.

Robo-Advisor

These are low cost investment tools specifically targeted for the tech savvy millennial investor. They manage financial portfolios using complex and effective algorithms. Robo advisors tend to invest using ETFs based on a client’s risk tolerance, financial goals, and time-horizon. Robo Advisor services are almost always exclusively online and the human contact tends to be minimal. As a result of that, they tend to cost less than traditional financial advisors. However, it’s important to remember that investors also pay the cost of ETFs themselves. Add up the portfolio management fees along with the ETF management fees and the total comes in around 1%—better than most mutual funds, but not super cheap. The big advantage with robo-advisors is that they need few, if any, restrictions on investment size. This makes them ideal investment tools for those starting out their investment journey, with less money to invest.

2. Assess your risk tolerance and choose an asset class based on that

After setting up your account, either with a brokerage or a robo advisor, it’s time to start investing. This might seem a little daunting at first. There are a lot of investing options, depending on your risk tolerance, or how willing you are to lose your money in exchange for a higher return.

Higher the risk, the higher the returns. So they usually seem quite tempting and you should have a portion of your portfolio in high risk stocks, as long as they are offset by safer asset classes. The key to a successful portfolio is diversification. You should always invest your hard earned money in different asset classes. 

An “asset class” is nothing but a group of similar kinds of investments. You can invest in one asset class or many. A mix of asset classes, or diversification, gives you a well-rounded portfolio that can weather the ups and downs of the stock market. A good example of a diversified portfolio would be investing in a mutual fund, owning a variety of individual stocks across a number of sectors (like healthcare, transportation, and retail) and also owning and renting out a few real estate properties.

Here are the basic asset classes for investors based on how risky they are:

1. Cash
2. Bonds
3. Real Estate
4. Stocks
5. Futures and Other Derivatives
6. Commodities and Precious Metals
7. Other Alternative Investments

We are not discussing all of them in great detail as it would make the post extremely long. You can read about them individually at a later time.

3. Set a Deadline and Choose an Investing Goal

After deciding your preferred asset classes and how to allocate funds to them, you need to set your financial goals. What are you saving and investing for? How much will you need? For example, if you are saving for buying a new car, the amount will be much smaller than if you are saving for a house. If you’re saving for retirement, it will be a larger corpus than your kid’s education fund. The key terms that arise here, are long term investment and short term investment. Let’s discuss them in a little detail.

What’s the difference between long-term and short term investment?

Here are some popular types of short term investments:

Treasury Bills:

These short term investment tools mature in less than 91 days. These are perfect for investors who want high levels of liquidity.

Gilt Funds:

These funds don’t have any credit risk and exclusively invest in government securities.

Ultra short term Debt Funds:

These usually have a maturity period ranging between 3-6 months and offer better returns compared to other high liquidity funds.

Large Cap Mutual Funds:

As the name suggests, a large chunk of your money gets invested in companies with large market-capitalization. These funds can generate good returns in a short period of just 1-3 years. Large cap mutual funds offer stable returns and come with very little risk as your money is invested in companies that are well established.

Here are some popular types of long term investments: 

Stocks:

Investing in stocks is one of the best ways to generate a good amount of returns. There are numerous stories of investors who bought stocks at very low prices over a few decades ago and have become millionaires as a result of the growth in price. However, you must do your research and properly understand the growth prospects and future potential before putting your hard earned money in the company for a long term. As the stock prices tend to move up and down, a careful approach and guidance is needed when it comes to the topic of holding, buying or selling stocks. The best decisions in the stock market are always the most well researched and well thought out ones.

You can check Best Stocks to Buy Now to find out potential stocks.

Equity Mutual Funds:

Investors with high risk appetites can choose to invest in equity mutual funds especially in mid cap and small cap funds since they can generate higher levels of returns.

Passive Income methods:

Dividend Stocks

Dividend stocks are a great tool for earning passive income. They have been tried and tested over many years by numerous investors. You will need to do much research to seek out good stocks and invest a big amount of cash to receive large dividend checks. However, if you consistently invest money into dividend stocks you’ll amass a pleasant residual income over time.

For any of those investment opportunities, confirm you open an account at the simplest online brokerage, and obtain rewards while doing it.

Peer to Peer Lending

P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you’ve got the power to settle on the borrowers and are ready to spread your investment amount to mitigate your risk.

Rental Properties

A cash flowing rental property is a great way to usher in a monthly income. However, to make it completely passive, you will have to consider outsourcing your property’s management to a dedicated property management company. However, just like with everything else, the advent of the internet has resulted in rental property investment becoming far easier than ever before. There are a lot of ways you can invest in rental properties depending on what your goals and interests are. You can be a limited partner in large residential or commercial properties, otherwise, you can purchase homes and be a landlord – all online!

In case you want the exposure and the income but don’t want to become a landlord, you can consider being a limited partner for a large development. With these options, you’ll invest in multi-family or commercial properties. You get the income and tax treatment a bit like regular land ownership, but you do not do any of the work!

High Yield Savings Accounts And Money Market Funds

In case you don’t want to spend too much time and effort thinking about your money and want the money to do the work for you, you can invest your money in a high yield bank account or money market fund.

The difference is within the account type and where it’s located. High yield savings accounts are offered by top banks and are usually FDIC insured. Money market funds are often offered by both banks and investment companies, and FDIC insured sometimes.

Interest rates have been rising, so putting more money into a savings account can generate a safe passive income stream.

Certificates of Deposit (CD) Ladders

To build a CD ladder, you will need to buy CDs (certificates of deposits) from banks in certain increments so that you can keep earning increasing returns from your money. Most banks offer CDs. These are low risk investment tools, hence the return rates are also low. It’s great for people who are risk averse. In case you find the construction of a CD Ladder a bit too complicated and convoluted, you can choose to stick with a standard high yield bank account or market fund. CDs offer low rates of returns compared to other options on the list, but on the other hand, they also carry very little risk.

Annuities

Annuities are a type of insurance product that requires you to pay in the beginning but it can provide you with passive income for the rest of your life. Annuities usually have varying terms and don’t always offer a great deal. So before you invest in annuities, you should try speaking to your financial advisor. Annuities are definitely not for everyone as they can come with high fees and might not yield desired returns in the end. However, if your risk tolerance is as low as possible and you want a decent passive income stream, annuities can be a good addition to your portfolio.

Invest Automatically In The Stock Market

If you’re not interested in picking dividend paying stocks (and we can understand that), there are still ways to invest passively in the stock market. You can automatically invest in various ways through what’s called a robo-advisor.

A robo-advisor is quite self explanatory. It’s a robotic financial advisor. You spend about 10 minutes answering a few questions and setting up your account, and the system will take it from there. It will make investments as per your goals and risk appetite, rebalancing your portfolio periodically.

REIT (Real Estate Investment Trust)

If you’re concerned about investing directly in real estate, or maybe you’re not yet an accredited investor, that’s okay.  Enter REITs – Real Estate Investment Trusts, which allow you to take advantage of real estate investments. These are investment vehicles that hold property within them – and you as the owner get to benefit from the gains, refinances, sale, income (or loss) on the property.

Refinance Your Mortgage

At first glance, this definitely appears a bit weird in a passive income generation article, but if you refinance your existing mortgages wisely, you can free up a lot more money and save hundreds of thousands of dollars over your lifetime. That is a lot of money.

Right now, interest rates are still near historic lows, and if you haven’t checked out your mortgage lately, now’s a great time to shop around and compare rates. If you can save 0.50% or more on your loan, you’re potentially adding tens of thousands of dollars back into your pocket. Not many investments can beat that.

4. Outline the budget for your investment

While it might seem boring, budgeting is key to becoming a successful investor. While you are creating your budget, try to allocate a good amount of money for investing. One of the good ways to invest successfully on a budget is value investing or investing in undervalued stocks which are cheap at the moment but are projected to rise in the future.

What is value investing?

Value investing is an investment approach that seeks to profit from identifying undervalued stocks. It is supported by the thought that every stock has an intrinsic value, i.e. what it is truly worth.

Through the fundamental analysis of a corporation, we can figure out its intrinsic value. The idea is to buy stocks that trade at a significant discount on their intrinsic values (i.e. they are cheaper than their true value). Once we buy an undervalued stock, the stock price eventually rises towards its intrinsic value, and makes a profit for us within the process.

Value investing is conceptually simple, though it does require effort to implement. Here are some of value investing’s philosophies:

Component #1: Mr. Market

Imagine you are in a partnership with Mr. Market, where you can buy or sell shares. Each day, Mr. Market offers you prices for shares counting on his mood. If Mr. Market is feeling very optimistic, he will offer very high prices. In this case, an investor should sell the shares. If Mr. Market is in a very pessimistic mood, he will offer low prices, and this is often the time to shop for new shares.

Component #2: Intrinsic Value

Intrinsic value represents the true value of the company based on fundamentals. In the short term, market prices deviate from their intrinsic values thanks to changing market sentiments. In the future, market prices return to intrinsic values. This process allows us to make profits, because we can buy stocks when they fall below their intrinsic values. We then hold them until they return to their intrinsic values in the long term.

Component #3: Margin of Safety

The margin of safety is the essence of valuation. Since the estimates of intrinsic value involve subjective assessments, there is a possibility of being overly optimistic. By adjusting the optimism, the margin of safety can provide a decent cushion.

Component #4: Investment Horizon

Value investing works with an eye on the future, because that’s when prices return to their intrinsic value. Value investing doesn’t aim to predict what stock prices will do 2 days or 2 months from now. Instead, it aims to pick undervalued businesses that will outperform in the long term. This will eventually reflect in the stock price.

Avoiding stock chasing

Never chase a stock. You must take control of your conscience/emotions and stick to your plan and price target you’d like to purchase it at. Stocks rise yes, but they also pullback (meaning fall) as well. We saw this in 2009 with the Great Recession and we saw this in 2020 with the Great Lockdown due to the global Coronavirus pandemic.

Be patient, have cash saved up to wait for stocks to pull back and have cash saved up to buy consistently every month or quarter when stocks are on the way up too.

Those who get too excited, end up buying into a stock at too high of a price out of emotion. Emotions are not good in the investing world. Subdue them.

Those who day trade will echo these sentiments. If you stick to the original plan you have of what price you would like to buy the stock at and what price you want to sell at, then you will see better results.

5. Lower Your Fees and Expenses

Once you start investing, you will find out that a lot of your returns are being eaten up by fees. So make sure you are not getting ripped off in that regard and manage your fees well. When you invest, these are some of the fees you will encounter:

• Account Maintenance Fees: This will typically be an annual fee below $100. However, this fee is generally waived after you cross a minimum balance threshold.
• Commissions: A flat amount per trade or a flat amount plus a percentage per trade. This fee tends to vary with your broker and the type of funds you invest in.
• Mutual Fund Loads: Either front-end, back-end, or a combination of both. However, if the brokers hold the funds in their own brokerage accounts, these charges are usually waived.
• 12b-1 Fees: These are levied internally on your mutual funds. They can slash your fund value by up to 1% every year.
• Management or Advisor Fees: A fee paid to an advisor who manages your accounts. Of course, you can get rid of this entirely if you manage your account yourself. That will take time and effort but once you pull through, you will save thousands of dollars every year.

So those were some important things to know before you start investing. Investing is definitely not the easiest thing for beginners, but remember, even Warren Buffet was a beginner once. It’s possible, so don’t feel daunted by the scale of things at the beginning. It gets easier with time. Focus on sharpening your investing skills over time and create generational wealth for yourself and your family.

High Risk-High Reward Methods for Earning Money

Any kind of investment that offers an incredibly high amount of return in a brief period of time, tends to be quite risky. However, the higher the risk, higher the reward. Despite the probability of back breaking losses, the allure of the high reward always attracts investors to the high-risk high reward methods of earning money. There are definitely no guaranteed methods of earning copious amounts of money in a short period of time but there are some kinds of investments which can help you do that, combined with significant risks obviously. Always remember, for every high risk-high reward investment method that worked, hundreds didn’t. So while the returns might be astronomical, the chances of loss are also very high. Before you invest in any of the investment tools that we have discussed in this article, you must build a solid combination of experience, risk management, and education. Once you have that, treading the path of high risk-high reward investments is going to be a lot safer and easier.

High Risk-High Reward Methods of Earning Money: Get Started With These

Investing in Options

Options are wonderful for investors trying to time the market. When investors buy options, they purchase a stock or commodity equity at a specified price within a future date range. In case the price doesn’t end up as predicted, the investor won’t have to sell/purchase the option security.

The time requirements placed on the sale/purchase of the securities makes it very risky. Timing the market is risky, but it can also be extremely rewarding if you manage to predict correctly.

Investing in Cryptocurrency

Cryptocurrencies have already created a few millionaires. Based on available research, this is a field that can help you make a lot of money but it isn’t easy or without risk. To make money through cryptocurrency, you need to buy some and hope that it increases in value. However, cryptocurrencies aren’t guaranteed to increase in value. In fact, the value of cryptocurrencies fluctuates much more dramatically than regular currencies do.

Initial Public Offerings

Some initial public offerings (IPOs), such as Snapchat’s in mid-2017, attract a lot of attention that can skew valuations and the judgments professionals offer on short-term returns. However, a lot of IPOs from smaller firms tend to be more low profile and allow investors the chance to buy some nice undervalued stocks. This leads to high short and long term returns once the company’s value is corrected. A lot of IPOs fail to generate significant returns (like SNAP) but some do, like Twilio Inc. (TWLO), a cloud communications company that went public in June of 2016, raised $150 million at an IPO offer price of $15 a share. In just its third trading day, it shot up by 90% and by the end of the year, it went up by 101%. The risk in IPO investment comes from the uncertainty associated with the company, and if the management is going to take the necessary steps to take the company forward.

Venture Capital

Many startups are fueled by great ideas by people who are not business-minded. Venture capital investors need to do additional research to securely assess the viability of a brand new company. Venture capital investments tend to come with very high minimums, which can prove to be challenging for many investors. Venture capital is a high risk-high reward way to earn money but ensure that you do your due diligence before putting any money in the field.

Foreign Emerging Markets

Countries with fast rising economies are great for investment. Investors can put money in government bonds, stocks or sectors with that country experiencing hyper-growth or ETFs that represent a growing sector of stocks. One of the best examples of that is China between 2010 and 2018. While furious economic growth in the short term is a rare occurrence in the global economy, sometimes, it can prove to be a great source of income for investors. One of the biggest risks associated with this is that the expected growth period might conclude before it was expected. The country’s politics can also change suddenly and bring a drastic change into the country’s economic growth and investment policies.

Real Estate Investment Trusts (REITs)

Real estate investment trusts (REITs) give high dividends in exchange for tax breaks. The investment is carried out in commercial or residential real estate.

Due to the underlying interest in real estate ventures, REITs are prone to swings based on developments in an overall economy, levels of interest rates and the current state of the real estate market, which is known to flourish or experience depression. The real estate market fluctuates quite a bit, and results in REITS being quite risky. REITs that offer the highest dividends of 10% to 15% are also at times the riskiest.

High Yield Bonds

High yield bonds have the capacity to offer investors a large chunk of money with the risk of a potential loss of principal. These instruments can be particularly attractive when compared to the current bonds offered by a government in a low-interest-rate environment.

However, investors should remember that high yield bonds that offer 15 to 20% may be junk. The initial consideration that multiple instances of reinvestment will double a principal should be tested against the potential for a total loss of investment dollars. Most high yield bonds don’t fail though, so they can prove to be lucrative.

Online Betting

Online betting is extremely popular across the globe. The number of bookmakers who offer great sports betting odds online and casino games is increasing every day. While a lot of betting sites are only for users to have some fun with a small amount of money, there are a lot of bettors who also take it very seriously and earn enough money to make a comfortable living through the world of online betting. It is definitely one of the high risk-high reward methods of earning money. While difficult, it is possible to generate long term profit in the world of online betting. The world of sports can also be unpredictable at times, so be prepared for some unexpected shocks at times. However, online betting is definitely a great high risk-high reward method of earning money and if you are looking to start, these brief tips will help you set the ball rolling.

• Focus on skill rather than luck – Don’t bet blindly and expect to get rich off a stroke of luck. Betting is essentially guesswork, but the guesses have to be educated, not blind ones.
• Know your sport inside out – Needless to say, unless you know everything about the sport you are betting on, the chances of generating any significant amount of money by betting on it are quite slim. Don’t place bets on sports which you have no idea of. Even if the odds seem lucrative, don’t place money on things you are unaware of.
• Shop around for the best odds – Different betting websites offer different odds for different sporting events. Let’s say you want to place your bet on the Super Bowl, look around different websites to find the best odds and then place your bets. Don’t do it at the first website that you can come across (you can come back to it later if it happens to have the best odds). Sites like betopin.com offer best odds, predictions and Betting 1×2 tips.
• Claim betting offers – Most online bookmakers have amazing betting offers and promotions for users. Make sure you go through them and try to claim the benefits for yourself. It’s free money essentially, no need to leave it on the table
• Maintain your discipline – This is an incredibly important aspect of online betting. It will protect you from making reckless bets or betting too much of your fortune. Even if you have been winning constantly, don’t start placing blind and irresponsible bets, believing that you have some incredible “good luck” phase going on. If you win a lot in a row, you shouldn’t suddenly start upping the stakes. And if you lose a few, don’t start trying to recoup the money by placing silly wagers. Just be patient, trust in your carefully constructed betting strategy and bet accordingly. You will manage to pull through eventually.

So these were some of the best high risk-high reward methods of earning money. These are very lucrative but they also carry a very large amount of risk. So don’t put your hard earned money in these recklessly. Take your time to learn and understand these methods and then go ahead. Taking some risks is good, but don’t ignore safety altogether.

Which are the Best Vanguard Funds for You in 2021

Vanguard is a very reputable name in the world of investing and its funds are very popular among buy-and-hold or long term investors. The reason behind Vanguard’s popularity is their incredible selection of high-quality, low-cost mutual funds and ETFs. These awesome qualities really make Vanguard funds a very good choice for those who are willing to invest in the long term. However, just because Vanguard offers a great selection of funds for long term investment, you shouldn’t go ahead and blindly invest in one of those. First, you need to determine whether you are a long term investor or not. Sometimes, different financial planners can define “long term” differently. But as a general rule of thumb, if you can invest and wait for a minimum of 10 years before you need to start withdrawing from your investment accounts, you will qualify as a long term investor. This definition holds true for bond securities as well. Now, on to the best funds offered by Vanguard for this purpose.

Here are the Best Vanguard funds for you:

Vanguard Total Stock Market Index Fund Admiral Shares MUTF (VTSAX)

Kicking off the list of the best Vanguard funds is the Vanguard’ Total Stock Market Index (VTSAX). There are two reasons why it’s the world’s largest open ended fund: it is a diversified stock market index fund, and its expenses are extremely low. The portfolio provides exposure to the entire U.S. stock market, including small, mid, and large cap stocks. This portfolio mix includes over 3,500 securities. The expenses are only 0.04% or $4 for every $10,000 invested, and the minimum initial investment is $3,000 for Admiral Shares. This is also available as Vanguard Total Stock Market ETF (VTI), with a 0.03% expense ratio.

Vanguard Wellesley Income Fund Investor Shares MUTF (VWINX)

Next on the list of the best Vanguard funds, is the Vanguard Wellesley Income (VWINX). It holds a conservative (low risk) allocation of roughly 40% stocks and 60% bonds. VWINX is great for long-term investors who have a comparatively low tolerance for risk or retired investors trying to find a mixture of income and growth. For an actively managed fund, the VWINX has a very low expense rate of 0.23%. This fund also requires a $3,000 minimum initial investment. 

Vanguard 500 Index Fund Admiral Shares MUTF (VFIAX)

Next on the list of the best Vanguard funds is the Vanguard 500 Index (VFIAX). This popular index fund operates by tracking the S&P 500 index. What that essentially means is that the fund holds just over 500 of America’s largest stocks. This allows the VFIAX shareholders to gain exposure to some of America’s largest stocks such as Apple (AAPL), Facebook (FB), Amazon (AMZN), and Alphabet (GOOG, GOOGL), the parent company of Google. VFIAX may be a smart choice for investors who want to create a portfolio that has other stock funds, like small-, and mid-cap funds. The expense ratio for VFIAX is 0.04%, and the minimum initial investment is $3,000. It is also available as Vanguard S&P 500 ETF (VOO), with a 0.03% expense ratio.

Vanguard Total Bond Market Index Fund Admiral Shares MUTF (VBTLX)

Next on the list of the best Vanguard funds, is the Vanguard Total Bond Market Index (VBTLX). Although long-term investing is usually related to stocks, all smart investors need to have at least some of their investments tied up in bonds. VBTLX offers well-diversified low-cost investments like most good index funds. The VBTLX portfolio consists of almost 9,000 U.S. government and corporate bonds. The expense ratio for VBTLX is 0.05%, and the minimum initial investment is $3,000. This is also available as an ETF and it carries an expense ratio of 0.035%.

Vanguard STAR Fund Investor Shares MUTF (VGSTX)

Next on the list of the best Vanguard funds is Vanguard STAR (VGSTX). You may have noticed that a lot of funds have minimums of $3,000 to start out investing. However, VGSTX has a lower minimum of $1,000. It is also what’s referred to as a fund of funds, which suggests it invests in other mutual funds, which has some advantages over single fund options. The STAR fund consists of a diversified mixture of 11 Vanguard funds, making it a solid standalone option for beginner investors or those looking for a one fund solution for investing. While the 0.31% expense ratio appears to be high but it still happens to be 62% lower when compared to funds that have similar holdings. 

Vanguard Total International Stock Market Index Fund Admiral Shares MUTF (VTIAX)

Next on the list of the best Vanguard funds, is the Vanguard Total International Stock Market Index (VTIAX). To build an entire portfolio of long-term investments, most investors will include international stock funds, and VTIAX is one of the best Vanguard offerings in this field. The index that VTIAX tracks has more than 6,000 non-American stocks and features stocks from developed markets like Germany and Japan, as well as developing markets such as China, India and Brazil. After coughing up an expense ratio of 0.11%, shareholders can gain exposure to the whole stock exchange outside the U.S. The minimum initial investment with this fund is also $3,000.  Investors can also pick up the index at one-share costs, like Vanguard Total International Stock ETF (VXUS), with a lower expense ratio of 0.08%.

Vanguard Growth Index Fund Admiral Shares MUTF (VIGAX)

Next on the list of the best Vanguard funds, is the VIGAX. This fund is suitable for investors who are open towards taking a little more risk in order to enjoy the high returns of S&P 500 type broad market indices. This index fund consists of large-cap growth stocks that have been outperforming the S&P 500 for over 10 years. Expenses for VIGAX are 0.05%, and the minimum initial investment is $3,000. It is also available as Vanguard Growth ETF (VUG) with a 0.04% expense ratio.

Vanguard Balanced Index Fund Admiral Shares MUTF (VBIAX)

Next on the list of the best Vanguard funds, is the Vanguard Balanced Index (VBIAX). Vanguard features a small but outstanding selection of balanced funds—mutual funds or ETFs that invest in a combination of stocks and bonds. VBIAX features a moderate (medium risk) allocation of about 60% stocks and 40% bonds. The stock portion invests within a total stock market index, and therefore the bond portion invests within a total bond index. The expenses are 0.07%, and the minimum initial investment is $3,000.

Vanguard Mid-Cap Index Fund Admiral Shares MUTF (VIMAX)

Next on the list of the best Vanguard funds, is the Vanguard Mid-Cap Index (VIMAX). Small- and mid-cap stocks have historically outperformed large-cap stocks, but mid-cap stocks are often the wiser choice of the three. When compared to large cap stocks, mid cap stocks are riskier, but they are safer than small cap stocks. Therefore, investors often consider mid-caps the sweet spot of investing due to their sweeter risk to reward ratio. VIMAX has a low expense ratio of 0.05%, and the minimum initial investment is $3,000. The same blend is also available as an ETF, as Vanguard Mid-Cap ETF (VO), with a 0.04% expense ratio.

Vanguard Target Retirement Funds

Rounding off our list of the best Vanguard funds are the Vanguard Target Retirement Funds. These funds, as their name suggests operate with an investment strategy that caters to the target retirement year. There are quite a few Target Retirement Funds on offer from Vanguard and you can choose one that fulfils your requirements the best. For example, Vanguard Target Retirement 2040 (VFORX) has an asset allocation of roughly 85% stocks and 15% bonds, which is acceptable for an investor planning to retire some time around the year 2040. 

So those were the best Vanguard funds available for investment. If you were looking to invest some hard earned money in a Vanguard fund, this post will hopefully help you make that choice. 

The Very Best Vanguard Index Funds for You in 2021

The Vanguard Group is a famous American investment advisor. It is based in Malvern, Pennsylvania and has over $5.3 trillion in assets under management. It is the most important provider of mutual funds, the second-largest provider of exchange-traded funds (ETFs) of the world after BlackRock’s iShares. In addition to mutual funds and ETFs, Vanguard offers brokerage services, variable and glued annuities, educational account services, financial planning, asset management, and trust services. The Vanguard group has some wonderful index funds for potential investors to choose from and in this post, we’ll be taking a look at them. Let’s get started.

Vanguard Index Funds

What’s an index?

An index is nothing but a set of companies that represents some segment of the stock exchange or maybe the whole stock exchange. The Standard & Poor’s 500, or S&P 500 in short, tracks 500 large companies and is the perennial nemesis of active fund managers charged with the unenviable task of trying to beat it.

The Wilshire 5000 is broader, and is designed to measure the performance of all stocks actively traded in the United States. The Russell 2000 tracks the ups and downs experienced by small cap firms. There are indexes for each sector of the market throughout the planet as well.

“A good way to think about it is like a funnel. You could think about it in terms of the broadest of the broad markets, and then imagine it narrowing to focus on specific types of companies,” says Jim Rowley, head of active-passive portfolio research at Vanguard.

Investors can choose one fund that tracks the global stock market or build their own template with index funds of individual countries or regions. A lot of indices track different firms based on their size, small, medium or large. Quite a few indices also follow sectors such as manufacturing, healthcare and IT. Bond indices can also break the bond market in similar ways to stocks. Instead of segmenting bonds by the size of the company, they are grouped according to the creditworthiness of the company (because bonds are a debt instrument). Bonds are also categorized based on their maturity. As a result of that, short term and long term bonds are always placed in different baskets. While that might sound somewhat complicated and the availability of so many options might seem overwhelming, don’t give up.

What are index funds?

Index funds are mutual funds or exchange-traded funds that track an index, such as the S&P 500. They are designed to offer investors exposure to a broad swath of the stock exchange at a really low cost. Index funds are distinct from actively managed funds. An active fund and an index fund may consist of stocks of some of the same companies. But the active fund will hold them in several weightings and concentrations in an effort to beat the index, which results in a vastly different set of risks and returns. Index funds consistently outperform most active funds, on top of that, they also carry lower fees.

“One of the good things about index funds is that they’re an excellent start line,” Vanguard’s Rowley says. Vanguard was founded by John Bogle, the inventor of the index fund. “If you would like to create a broadly diversified, low-cost portfolio, a sensible way is to settle on a U.S. market index fund, a world market fund and investment-grade bonds,” he says.

What are the best Vanguard index funds?

Vanguard provides more than 100 index funds and ETFs for investors to choose from. There is no set “right fund” for you as it depends on your investment goals, portfolio mix and what fees you can afford. While past performance can’t be seen as a guarantee of results, it does a good job of giving a general idea of the fund and its performances. Here are some of the best Vanguard index funds.

Vanguard 500 Index Fund (VFIAX)

Kicking off our list of the best Vanguard index funds is the Vanguard 500 Index Fund (VFIAX). This fund is also called the Vanguard S&P 500 Index fund. This is the first fund that gave investors an exposure to 500 of the largest U.S. companies. These companies make up over 75% of the total value of the US stock market. 

Minimum investment: $3,000. Expense ratio: 0.04%.

Vanguard Total Stock Market Index Fund (VTSAX)

Next on our list of the best Vanguard index funds is the Vanguard Total Stock Market Index Fund (VTSAX). This fund goes beyond the VFIAX and covers the US equity market completely. It includes small, mid, and large cap growth and value stocks.

Minimum investment: $3,000. Expense ratio: 0.04%.

Vanguard Total Bond Market Index Fund (VBTLX)

Next on our list of the best Vanguard index funds, is the Vanguard Total Bond Market Index Fund (VBTLX). This fund gives its investors an exposure to U.S. investment-grade bonds. 70% is invested in US Government bonds and 30% is invested in corporate bonds.

Minimum investment: $3,000. Expense ratio: 0.05%.

Vanguard Balanced Index Fund (VBIAX)

Next on our list of the best Vanguard index funds, is the Vanguard Balanced Index Fund (VBIAX). As it’s evident from the name, the fund consists of a mixture of stocks (around 60%) and bonds (around 40%). This fund balances growth through exposure to equities, with stability through fixed-income investments.

Minimum investment: $3,000. Expense ratio: 0.07%.

Vanguard Growth Index Fund (VIGAX)

Next on our list of the best Vanguard index funds, is the Vanguard Growth Index Fund (VIGAX). This fund is suitable for investors who are open towards taking a little more risk in order to enjoy the high returns of S&P 500 type broad market indices. This index fund consists of large-cap growth stocks that have been outperforming the S&P 500 for over 10 years. 

Minimum investment: $3,000. Expense ratio: 0.05%.

Vanguard Small Cap Index Fund (VSMAX)

Next on our list of the best Vanguard index funds, is the Vanguard Small Cap Index Fund (VSMAX). This index fund is focused on smaller, publicly held companies. It is very useful for investors who are looking to diversify their investments away from large public companies.

Minimum investment: $3,000. Expense ratio: 0.05%.

Vanguard Total International Stock Index Fund (VTIAX)

Next on our list of the best Vanguard index funds, is the Vanguard Total International Stock Index Fund (VTIAX). The index that VTIAX tracks has more than 6,000 non-American stocks and features stocks from developed markets like Germany and Japan, as well as developing markets such as China, India and Brazil. Minimum investment: $3,000. Expense ratio: 0.11%.

Vanguard Total International Bond Index Fund (VTABX)

Rounding off our list of the best Vanguard index funds is the Vanguard Total International Bond Index Fund (VTABX). It tracks the performance of non-U.S. investment-grade bonds.

Minimum investment: $3,000. Expense ratio: 0.11%.

So those were the best Vanguard index funds for you to invest in. If you were looking to invest some money in one of Vanguard’s index fund’s offerings, the information in this post should help you choose the right one for yourself. 

16 Best Stocks Under 20$ to Buy for 2020

Wondering “What are the best stocks under $20?” then you have landed on the right place.

A lot of times, you might be surprised to find stocks trading for under 20 per share. Just because that’s happening, it doesn’t necessarily mean it’s cheap or from a company that is failing. Whenever we analyse a company’s share price and valuation, we should always keep factors like sales, earnings, and expected growth in mind. There is no point projecting returns for this potential investment if these factors are ignored. Conversely, following the stocks which are trading at low pure-dollar prices can occasionally prove to be a great way to stumble upon undervalued stocks and investing in those shares at the perfect time. If you manage to invest in such stocks at the right time, you can reap massive returns. With that clarified, let’s look at the 16 best stocks under 20. 

Foley Trasimene Acquisition Corp. (WPF)

Kicking off our list of the 16 best stocks under 20, is Foley Trasimene Acquisition Corp. (WPF). The firm operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. Foley Trasimene Acquisition serves customers in the States of Nevada.

Jaws Acquisition Corp.(JWS)

Next on our list of the 16 best stocks under 20, is Jaws Acquisition Corp. (JWS). The firm operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. Jaws Acquisition serves customers in the State of Florida.

Social Capital Hedosophia Holdings Corp. III (IPOC)

Next on our list of the 16 best stocks under 20, is Social Capital Hedosophia Holdings Corp. III (IPOC). The firm operates as a blank check company. The firm intends to identify and invest in innovative and agile technology companies. The company was founded on October 18, 2019 by Chamath Palihapitiya and Ian Osborne and is headquartered in Palo Alto, CA.

China Yuchai International Limited (CYD)

Next on our list of the 16 best stocks under 20, is China Yuchai International Limited. It is a holding company. The Company holds interest in Guangxi Yuchai Machinery Company Limited (Yuchai), which manufactures, assembles and sells diesel engines in the People’s Republic of China (the PRC). It holds interest in HL Global Enterprises Limited (HLGE) and Thakral Corporation Ltd (TCL). It operates through two segments: Yuchai and HLGE. Its Yuchai segment is engaged in the manufacture, assembly and sale of a range of light-, medium- and heavy-duty engines for trucks, buses, passenger vehicles, construction equipment, and marine and agriculture applications in China. The HLGE segment is engaged in hospitality and property development activities conducted in the PRC and Malaysia. Its HLGE also owns a Copthorne hotel in Qingdao (PRC), Elite residences in Shanghai and a Copthorne hotel in Cameron Highlands, Malaysia. TCL is engaged in the distribution of lifestyle products, including beauty and health, and enviro-care products.

Albertsons Companies, Inc. (ACI)

Next on our list of the 16 best stocks under 20, is Albertsons Companies, Inc. It is an American grocery company founded and headquartered in Boise, Idaho.

With 2,252 stores as of the first quarter of fiscal year 2021 and 270,000 employees as of fiscal year 2020, the company is the second-largest supermarket chain in North America after Kroger, which has 2,750 stores. Albertsons ranked 53rd in the 2018 Fortune 500 list of the largest United States corporations by total revenue. Prior to its January 2015 merger with Safeway Inc. for $9.2 billion, it had 1,075 supermarkets located in 29 U.S. states under 12 different banners. Its predecessor company, Albertsons, Inc., was reorganized as Albertsons LLC and sold to AB Acquisition LLC, a Cerberus Capital Management-led consortium. After buying back the majority of its former stores it sold to SuperValu in 2006, AB Acquisition announced it would change its name to Albertsons Companies Inc. in 2015. The company’s corporate name was Albertson’s Inc. until 2002, when the apostrophe was removed.

Telephone and Data Systems, Inc. (TDS)

Next on our list of the 16 best stocks under 20, is Telephone and Data Systems, Inc. It is a diversified telecommunications company. The Company is engaged in conducting its Wireless operations through its subsidiary, United States Cellular Corporation (U.S. Cellular), as well as providing its wireline services, cable services, and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom). It operates through four business segments: U.S. Cellular, Wireline, Cable, and Hosted and Managed Services. U.S. Cellular provides service to postpaid and prepaid customers. Wireline operations provide retail telecommunications services to both residential and commercial customers. Wireline offers services, including broadband, video, voice and network access services. Cable offers broadband, video and voice services under TDS and BendBroadband brand names. It provides a range of information technology (IT) services, including colocation, and cloud and hosting solutions through its HMS business.

Smith & Wesson Brands, Inc. (SWBI)

Next on our list of the 16 best stocks under 20, is Smith & Wesson Brands, Inc. It is a holding company, which engages in the manufacture, design, and provision of firearms. It operates through the Firearms and Outdoor Products & Accessories segments. The Firearms segment comprises the manufacture of handguns, long guns, handcuffs, suppressors, and other firearm-related products for sale to a wide variety of customers. The Outdoor Products & Accessories segment engages in the distribution, manufacture, and design of reloading, gunsmithing, and gun cleaning supplies; stainless-steel cutting tools and accessories; flashlights; tree saws and related trimming accessories; shooting supplies, rests, and other related accessories; apparel; vault accessories; laser grips and laser sights; and a full range of products for survival and emergency preparedness. The company was founded by Michell A. Saltz on June 17, 1991 and is headquartered in Springfield, MA.

The ODP Corporation (ODP)

Next on our list of the 16 best stocks under 20, is the ODP Corporation. It is a holding company which operates in the USA. Its subsidiaries include The Office Depot Inc, which operates a chain of office product warehouse stores in North America, Europe, Asia, and Central America. The Company sells branded merchandise and provides business services primarily to small and medium-sized businesses and the home office market.

Hollysys Automation Technologies Ltd. (HOLI)

Next on our list of the 16 best stocks under 20, is Hollysys Automation Technologies Ltd. (HOLI). It is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.

Stratasys Ltd. (SSYS)

Next on our list of the 16 best stocks under 20, is Stratasys Ltd. (SSYS). It provides 3D printing and additive manufacturing solutions for individuals, businesses, and enterprises. Its 3D printing systems utilize its fused deposition modeling (FDM) and inkjet-based PolyJet technologies to enable the production of prototypes, tools used for production, and manufactured goods directly from 3D CAD files or other 3D content. The company offers entry-level desktop 3D printers to systems for rapid prototyping, and production systems for direct digital manufacturing. It also provides 3D printing consumable materials, including FDM cartridge-based materials, PolyJet cartridge-based materials, non-color digital materials, and color variations. Its products and services are primarily used in the automotive, aerospace, medical, dental, education, and consumer goods markets. The company sells its products through a network of resellers and independent sales agents worldwide. Stratasys Ltd. was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

First Midwest Bancorp, Inc. (FMBI)

Next on our list of the 16 best stocks under 20, is First Midwest Bancorp, Inc. (FMBI). The firm operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured and unsecured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. The company operates 127 locations and 178 automated teller machines in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.

Nexa Resources S.A. (NEXA)

Next on our list of the 16 best stocks under 20, is Nexa Resources S.A. (NEXA). Formerly known as VM Holding SA, it is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver, and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

Cadence Bancorporation (CADE)

Next on our list of the 16 best stocks under 20, is Cadence Bancorporation (CADE). It is a bank holding company, which engages in the provision of corporations, middle-market companies, small businesses, and consumers with banking and financial solutions. It operates through the following segments: Banking, Financial Services, and Corporate. The Banking segment offers deposit products and lending services through its commercial banking, retail banking, and private banking business lines. The Financial Services segment includes trust, retail brokerage, and investment services. The Corporate segment consists of parent-only activities, including debt and capital raising, and intercompany eliminations. The company was founded in 2009 and is headquartered in Houston, Texas.

First Financial Bancorp. (FFBC)

Next on our list of the 16 best stocks under 20, is First FInancial Bancorp. (FFBC). It is a regional bank holding company. First Financial is engaged in the business of commercial banking and other banking and banking-related activities through its subsidiary, First Financial Bank, National Association (the Bank). The range of banking services provided by First Financial to individuals and businesses includes commercial lending, real estate lending and consumer financing. First Financial offers deposit products that include interest-bearing and non-interest-bearing accounts, and cash management services for commercial customers. First Financial’s Wealth Management division provides a range of trust and asset management services. It operates 159 banking centers in Ohio, Indiana and Kentucky. It operates its Commercial Finance division, responsible for its insurance lending business and franchise lending business, from a non-banking center location in Indiana.

Carnival Corporation & Plc (CCL)

Next on our list of the 16 best stocks under 20, is Carnival Corporation & Plc (CCL). It is a British-American cruise operator, currently the world’s largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands. A dual-listed company, Carnival is composed of two companies, Panama-incorporated US-headquartered Carnival Corporation and UK-based Carnival plc, which function as one entity. Carnival Corporation is listed on the New York Stock Exchange and Carnival plc is listed on the London Stock Exchange. Carnival is listed in both the S&P 500 and FTSE 250 indices.

The Panama-incorporated entity Carnival Corporation has headquarters in the United States, with operational headquarters located in the city of Doral, Florida. The UK entity Carnival plc is based in Southampton.

Costamare Inc. (CMRE)

Rounding off our list of the 16 best stocks under 20, is Costamare Inc. (CMRE). It is a holding company, engages in the provision of containerships chartering. The firm owns vessels such as new build containerships and second hand vessels. The company was founded on April 21, 2008 and is headquartered in Monaco.

So these were the 16 best stocks to buy under 20. Their mouthwateringly low prices make them very tempting and they can be a great buy for harvesting great returns in the future. These undervalued gems can be a great addition to your portfolio and can provide you with some wonderful returns in the future to come.

11 Best Cheap Stocks to Buy Now

Wondering “What are the best cheap stocks to buy right now?” then you have landed on the right place.

The Stock Markets all over the world suffered major turmoil during the COVID crisis. However, the markets have shown a significant amount of recovery and a distinct upwards turn. This is a fantastic opportunity for investors to invest some money in stocks. When the markets are somewhat volatile, the best foot forward is to identify the best cheap stocks to buy now. These best cheap stocks to buy now have the potential to grow manifold in the future and provide fantastic returns to the investors. In this post, we will take a look at the 11 cheap stocks to buy now. Let’s get started.

Foley Trasimene Acquisition Corp. (WPF)

Kicking off our list of the 11 cheap stocks to buy now, is Foley Trasimene Acquisition Corp. (WPF). The firm operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. Foley Trasimene Acquisition serves customers in the States of Nevada.

Jaws Acquisition Corp. (JWS)

Next on our list of the 11 cheap stocks to buy now, is Jaws Acquisition Corp. (JWS). The firm operates as a blank check company. The Company aims to acquire one and more businesses and assets, via a merger, capital stock exchange, asset acquisition, stock purchase, and reorganization. Jaws Acquisition serves customers in the State of Florida.

Social Capital Hedosophia Holdings Corp. III (IPOC)

Next on our list of the 11 cheap stocks to buy now, is Social Capital Hedosophia Holdings Corp. III (IPOC). The firm operates as a blank check company. The firm intends to identify and invest in innovative and agile technology companies. The company was founded on October 18, 2019 by Chamath Palihapitiya and Ian Osborne and is headquartered in Palo Alto, CA.

Nexa Resources S.A. (NEXA)

Next on our list of the 11 cheap stocks to buy now, is Nexa Resources S.A. (NEXA). Formerly known as VM Holding SA, it is a Luxembourg-based company engaged in the mineral resources industry. The Company is a metals and mining entity mainly engaged in zinc content production, and whose product portfolio also includes copper, lead, silver, and gold. Its mining and smelting presence is located in Brazil, conducted by Votorantim Metais Zinco SA, and in Peru, conducted by Compania Minera Milpo SAA, and Votorantim Metais-Cajamarquilla SA. Its controlling shareholder is Votorantim SA, a Brazilian privately owned industrial conglomerate that holds ownership interests in metal, steel, cement, energy and pulp companies, among others.

First Midwest Bancorp, Inc. (FMBI)

Next on our list of the 11 cheap stocks to buy now, is First Midwest Bancorp, Inc. (FMBI). The firm operates as the bank holding company for First Midwest Bank that provides various banking products and services. The company accepts checking, NOW, money market, and savings accounts, as well as various types of short-term and long-term certificates of deposit. Its loan products include working capital loans; accounts receivable financing; inventory and equipment financing; sector-based lending, including healthcare, asset-based lending, structured finance, and syndications; agricultural loans; and mortgages, home equity lines and loans, personal loans, specialty loans, and consumer secured and unsecured loans, as well as funding for the construction, purchase, refinance, or improvement of commercial real estate properties. The company operates 127 locations and 178 automated teller machines in metropolitan Chicago, southeast Wisconsin, northwest Indiana, central and western Illinois, and eastern Iowa. First Midwest Bancorp, Inc. was incorporated in 1982 and is headquartered in Chicago, Illinois.

Cadence Bancorporation (CADE)

Next on our list of the 11 cheap stocks to buy now, is Cadence Bancorporation (CADE). It is a bank holding company, which engages in the provision of corporations, middle-market companies, small businesses, and consumers with banking and financial solutions. It operates through the following segments: Banking, Financial Services, and Corporate. The Banking segment offers deposit products and lending services through its commercial banking, retail banking, and private banking business lines. The Financial Services segment includes trust, retail brokerage, and investment services. The Corporate segment consists of parent-only activities, including debt and capital raising, and intercompany eliminations. The company was founded in 2009 and is headquartered in Houston, Texas.

First Financial Bancorp. (FFBC)

Next on our list of the 11 cheap stocks to buy now, is First FInancial Bancorp. (FFBC). It is a regional bank holding company. First Financial is engaged in the business of commercial banking and other banking and banking-related activities through its subsidiary, First Financial Bank, National Association (the Bank). The range of banking services provided by First Financial to individuals and businesses includes commercial lending, real estate lending and consumer financing. First Financial offers deposit products that include interest-bearing and non-interest-bearing accounts, and cash management services for commercial customers. First Financial’s Wealth Management division provides a range of trust and asset management services. It operates 159 banking centers in Ohio, Indiana and Kentucky. It operates its Commercial Finance division, responsible for its insurance lending business and franchise lending business, from a non-banking center location in Indiana.

Carnival Corporation & Plc (CCL)

Next on our list of the 11 cheap stocks to buy now, is Carnival Corporation & Plc (CCL). It is a British-American cruise operator, currently the world’s largest travel leisure company, with a combined fleet of over 100 vessels across 10 cruise line brands. A dual-listed company, Carnival is composed of two companies, Panama-incorporated US-headquartered Carnival Corporation and UK-based Carnival plc, which function as one entity. Carnival Corporation is listed on the New York Stock Exchange and Carnival plc is listed on the London Stock Exchange. Carnival is listed in both the S&P 500 and FTSE 250 indices.

The Panama-incorporated entity Carnival Corporation has headquarters in the United States, with operational headquarters located in the city of Doral, Florida. The UK entity Carnival plc is based in Southampton,

Costamare Inc. (CMRE)

Next on our list of the 11 cheap stocks to buy now, is Costamare Inc. (CMRE). It is a holding company, engages in the provision of containerships chartering. The firm owns vessels such as new build containerships and second hand vessels. The company was founded on April 21, 2008 and is headquartered in Monaco.

Hollysys Automation Technologies Ltd. (HOLI)

Next on our list of the 11 cheap stocks to buy now, is Hollysys Automation Technologies Ltd. (HOLI). It is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.

Stratasys Ltd. (SSYS)

Rounding off our list of the 11 cheap stocks to buy now, is Stratasys Ltd. (SSYS). It provides 3D printing and additive manufacturing solutions for individuals, businesses, and enterprises. Its 3D printing systems utilize its fused deposition modeling (FDM) and inkjet-based PolyJet technologies to enable the production of prototypes, tools used for production, and manufactured goods directly from 3D CAD files or other 3D content. The company offers entry-level desktop 3D printers to systems for rapid prototyping, and production systems for direct digital manufacturing. It also provides 3D printing consumable materials, including FDM cartridge-based materials, PolyJet cartridge-based materials, non-color digital materials, and color variations. Its products and services are primarily used in the automotive, aerospace, medical, dental, education, and consumer goods markets. The company sells its products through a network of resellers and independent sales agents worldwide. Stratasys Ltd. was founded in 1989 and is headquartered in Eden Prairie, Minnesota.

So these were the 11 cheap stocks to buy now. Because of their low price, the risk is also very low. The main reason behind that is these stocks have already reduced in price before you purchased them and usually, the only way is up. As long as you plan to invest long term, you might be able to make good money with these 11 cheap stocks to buy now.

15 Best Value Stocks to Buy Now

Investing in value stocks is always a sound strategy. Investing in value stocks means buying some undervalued stocks of good companies and holding them for the long term. Best value stocks are decided based on robust fundamental analysis and usually consist of quality companies whose value is expected to rise a lot in the future. The term “value investing” was coined by Benjamin Graham and it was popularized by one of his most famous students, Warren Buffet. He completely embraced value investment as a strategy and went on to become the world’s most successful investor. That shows a lot about the power of buying the best value stocks at the right time. In this post, we will take a look at the best value stocks that you can invest in. Let’s get started.

This list of Best Value Stocks was published in Sep 2020. This portfolio is currently trading in more than 43.95% profit. Contact on WhatsApp +91 93101 14668 to get List of Value Stocks to Enter Now.

The Best Value Stocks for You

AerCap Holdings N.V. (AER)

As one of the best value stocks, AerCap Holdings NV engages in aircraft leasing and aviation finance. The firm also provides aircraft owners, financiers and investors with asset services to manage an aircraft portfolio. It operates through leasing, financing, sales, and management of commercial aircraft and engines segments. The company was founded in 1995 and is headquartered in Dublin, Ireland.

Marathon Oil Corporation (MRO)

One of the best value stocks to buy, Marathon Oil Corporation (MRO) is one of the world’s most popular exploration and production (E&P) companies. The firm’s operations are carried out using two segments, United States E&P and International E&P.  As the names suggest, the US E&P explores, produces and markets natural gas liquids (NGLs), crude oil and condensate and natural gas within the United States. The International E&P does the same thing outside the United States. The firm also has a production factory in Equatorial Guinea which produces and markets natural gas derived products such as methanol and Liquefied Natural Gas (LNG).

CIT Group Inc. (CIT)

Another great value stock, CIT Group Inc. (CIT) is a bank holding company (BHC) and a financial holding company (FHC). The Company, together with its subsidiaries, provides financing, leasing and advisory services to middle market companies in a range of industries in North America. The Company’s segments include Commercial Banking, Consumer Banking, Non-Strategic Portfolios, and Corporate and Other. The Commercial Banking segment consists of four divisions: Commercial Finance, Rail, Real Estate Finance, and Business Capital. The Consumer Banking segment includes Retail Banking, Mortgage Lending, and SBA Lending (together referred to as Other Consumer Banking), and Legacy Consumer Mortgages (LCM). The Company’s products and services include account receivables collection, acquisition and expansion financing, asset management and servicing, asset-based loans, debt underwriting and syndication, deposits, enterprise value and cash flow loans, equipment leases, factoring services and financial risk management.

National Western Life Group, Inc. (NWLI)

National Western Life Group, Inc. is a holding company, which engages in the provision of life insurance services. It operates through the following business segments: Domestic Insurance Operations and International Insurance Operations. It is one of the best value stocks to buy. The Domestic Insurance Operations segment includes annuities, universal life insurance, and traditional life insurance, which include both term and whole life products. The International Insurance Operations segment focuses on foreign nationals in upper socioeconomic classes. It offers a broad portfolio of individual whole life, universal life and term insurance plans, and annuities, including supplementary riders. The company was founded on October 1, 2015 and is headquartered in Austin, Texas.

American National Group, Inc. (ANAT)

American National Group Inc, formerly American National Insurance Company, is engaged in life insurance, annuities, and property and casualty insurance. Its family of companies includes six life insurance companies, eight property and casualty insurance companies, and various non-insurance subsidiaries. Its segments include Life, which offers products, such as Whole Life, Term Life, Universal Life, Variable Universal Life and Credit Life Insurance; Annuity, including products, such as Deferred Annuity, Single Premium Immediate Annuity and Variable Annuity; Health, including, such as Medicare Supplement, Supplemental Insurance, Stop-Loss, Credit Disability and Medical Expense; Property and Casualty, which offers products, such as Personal Lines, Commercial Lines and Credit-Related Property Insurance products, and Corporate and Other, which consists of its invested assets that are not used to support insurance activities, and non-insurance subsidiaries. It is one of the best value stocks to buy.

Unum Group (UNM)

Unum Group is engaged in providing financial protection benefits. It operates through the following segments: Unum U.S., Unum UK, Colonial Life, Closed Block and Corporate. The Unum U.S. segment comprises group long-term and short-term disability insurance, group life and accidental death and dismemberment products, and supplemental and voluntary lines of business. The firm offers one of the best value stocks to buy. The Unum UK segment offers insurance for group long-term disability, group life, and supplemental lines of business which include dental, individual disability, and critical illness products. The Colonial Life segment includes insurance for accident, sickness, disability products, life products, and cancer and critical illness products. The Closed Block segment consists of individual disability, group and individual long-term care, and other insurance products no longer actively marketed. The Corporate segment refers to investment income on corporate assets and other corporate income and expenses not allocated to a line of business; and interest expense on corporate debt other than non-recourse debt. The company was founded in 1848 and is headquartered in Chattanooga, TN.

Enable Midstream Partners, LP (ENBL)

Enable Midstream Partners LP owns, operates and develops midstream energy infrastructure assets strategically located to serve its customers. The Company operates in two business segments: Gathering and Processing, and Transportation and Storage. Its gathering and processing segment primarily provides natural gas and crude oil gathering and natural gas processing services to its producer customers. Its transportation and storage segment provides interstate and intrastate natural gas pipeline transportation and storage services primarily to its producer, power plant, Local distribution company (LDC) and industrial end user customers. As of December 31, 2016, the Company owned and operated natural gas and crude oil gathering and natural gas processing assets in five states. As of December 31, 2016, the Company owned and operated interstate and intrastate transportation and storage systems across nine states. It is one of the best value stocks to buy.

Scorpio Tankers Inc. (STNG)

Scorpio Tankers Inc. (Scorpio Tankers) is a Monaco-based company active in the oil transportation industry. It has one of the best value stocks available today. The Company is engaged in the seaborne transportation of refined petroleum products in the international shipping markets. Scorpio Tankers operates through four segments: Handymax, MR (Medium Range), Long Range 1 (LR1)/Panamax and Long Range 2 (LR2)/Aframax. Each of the Company’s segments represents a different type of vessel with which it operates, with the total number of vessels being around 110. Handymax represents the smaller type of ship that the Company operates with, followed by MR, LR1 and LR2 being the biggest one. The Company operates with ships under its own ownership as well as finance leased or chartered-in.

Lincoln National Corporation (LNC)

Lincoln National Corp. is a holding company, which operates multiple insurance and retirement businesses through its subsidiary companies. It is one of the best value stocks to buy. It provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. The company operates through the following segments: Annuities, Retirement Plan Services, Life Insurance, Group Protection, and Other Operations. The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed and variable annuities. The Retirement Plan Services segment includes employers with retirement plan products and services, primarily in the defined contribution retirement plan marketplaces. The Life Insurance segment focuses on the creation and protection of wealth for its clients by providing life insurance products, including term insurance, both single and survivorship versions of universal life insurance, variable universal life insurance and indexed universal life insurance products. The Group Protection segment offers group non-medical insurance products, which includes term life, disability, dental, vision and accident and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The Other Operations segment includes the financial data for operations. Lincoln National was founded in 1968 and is headquartered in Radnor, Pennsylvania.

Patterson-UTI Energy, Inc. (PTEN)

Patterson-UTI Energy, Inc. engages in the provision of onshore contract drilling services to major and independent oil and natural gas operators. It operates through the following segments: Contract Drilling Services, Pressure Pumping Services, and Directional Drilling Services. The Contract Drilling Services segment markets its services to major and independent oil and natural gas operators. The Pressure Pumping Services segment provides pressure pumping services to oil and natural gas operators primarily in Texas and the Appalachian Basin. The Directional Drilling Services segment offers downhole performance motors and equipment to provide services including directional drilling, downhole performance motors, motor rentals, directional surveying, measurement-while-drilling, and wireline steering tools, in most major onshore oil and natural gas basins. The company was founded by Cloyce A. Talbott and A. Glenn Patterson in 1978 and is headquartered in Houston, Texas. It is definitely one of the best value stocks to buy.

Assured Guaranty Ltd. (AGO)

One of the best value stocks to buy, Assured Guaranty Ltd. is a holding company, which engages in the provision of credit protection products to the U.S. and international public finance, and structured finance markets through its subsidiaries. It is one of the best value stocks available today. The firm operates through the following segments: Insurance and Asset Management. The Insurance segment consists of the Company’s domestic and foreign insurance subsidiaries and their wholly-owned subsidiaries that provide credit protection products to the U.S. and international public and structured finance markets. The Asset Management segment consists of the Company’s Assured Investment Management subsidiaries, which provide asset management services to outside investors as well as to the Company’s Insurance segment. The company was founded in August 2003 and is headquartered in Hamilton, Bermuda.

Antero Resources Corporation (AR)

One of the best value stocks to buy, Antero Resources Corporation is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company’s segments include the exploration, development and production of natural gas, NGLs and oil; gathering and processing; water handling and treatment, and marketing of excess firm transportation capacity. The Company’s subsidiary, Antero Midstream Partners LP (Antero Midstream) is a master limited partnership, which owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream, as well as by third party gathering and compression arrangements. It also has access to additional low-pressure and high-pressure pipelines.

Brighthouse Financial, Inc. (BHF)

One of the best value stocks to buy, Brighthouse Financial, Inc. is a provider of life insurance and annuity products in the United States. The Company offers a range of products and services, which include variable, fixed, index-linked and income annuities, as well as variable, universal, term and whole life products. These products and services are marketed through various third party retail distribution channels in the United States. Fixed income annuities provide a guaranteed monthly income for a specified period of years and/or for the life of the annuitant. The Company operating segments include Annuities, Life and Run-off.

Genworth Financial, Inc. (GNW)

One of the best value stocks to buy, Genworth Financial, Inc. is a financial services company, which engages in the provision of insurance, wealth management, investment and financial solutions. It operates through the following segments: U.S. Mortgage Insurance, Canada Mortgage Insurance, Australia Mortgage Insurance, U.S. Life Insurance, and Runoff. The U.S. Mortgage Insurance segment offers mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans. The Canada Mortgage Insurance segment offers flow mortgage insurance and also provides bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk in Canada. The Australia Mortgage Insurance segment offers flow mortgage insurance and selectively provides bulk mortgage insurance that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. The U.S. Life Insurance segment offers long-term care insurance products as well as service traditional life insurance and fixed annuity products in the United States. The Runoff segment includes the results of non-strategic products which are no longer actively sold but continue to service its existing blocks of business. Its non-strategic products primarily include variable annuity, variable life insurance, institutional, corporate-owned life insurance and other accident and health insurance products. The company was founded in1871 and is headquartered in Richmond, Virgina.

Transocean Ltd. (RIG)

Rounding off our list of the best value stocks to buy, is Transocean Ltd. Together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. The company primarily offers drilling rigs, related equipment, and work crews; and ultra-deepwater and harsh environment drilling services. As of February 12, 2020, it owned or had partial ownership interests in and operated a fleet of 45 mobile offshore drilling units that consist of 28 ultra-deepwater floaters, 14 harsh environment floaters, and 3 midwater floaters. The company serves integrated oil companies or their affiliates, as well as government-controlled oil companies and independent oil companies. Transocean Ltd. is based in Steinhausen, Switzerland.

So those were some of the best value stocks that you can buy. Investing in undervalued stocks is always a good idea and most of the time, it provides good returns in the long term. So do your due diligence, carry out a robust fundamental analysis and invest in the best value stocks available in the market today.

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