Emperor Investments sponsored this post. All opinions expressed are mine.
This post is perfect for anyone who wants to learn about equity investing.
You have many options when it comes to investing in the stock exchange. There are different types of assets, different industries, and even investing techniques.
What you decide to do, and how much of it, will depend on a few factors like:
Your investing goals
What is the minimum investment?
What is your current financial situation?
Pure equity investing is a way to diversify* and build a passive income stream.
This post will cover all you need to start investing in equity. You can jump directly to the section you want in the table below.
Note: *Diversification is not a guarantee of profit or protection against loss in a declining markets. This is a way to manage investment risks. Remember that all investments come with some risk. Consult a financial adviser if you need to and never go all-in with your money.
Table of Contents
What is Equity Investing?
Capital Gains
Dividends
Equities Compared to ETFs, Mutual Funds and Mutual Funds
ETFs
Mutual Funds
Easy Way to Get Started with Equity Investing
Emperor Investments: How it Works
Emperor Investments can be a good choice
Final Thoughts
What is Equity Investing?
It’s pretty straightforward to do equity investing or “equity investment”. Stock investing is another term for buying shares of a company.
Equity investors buy company shares in the expectation that their value will increase if they receive compensation from a company.
Capital gains and dividends are the two main ways you can generate income from your equity investments.
Capital Gains
A capital gain is an increase in value that makes your shares worth more than their purchase price. However, your gains are only realized when you sell the shares.
The capital gain is also divided into two categories.
Short-term (less than one year)
Long-term (more that one year)
You must report any capital gains you make outside a retirement plan every year. For retirement accounts, capital gains are not taxed until you begin taking distributions.
Dividends
Many companies offer dividends to their shareholders. Dividends refer to the cash reward you receive as a shareholder of a successful business.
Dividends can be re-invested or cashed out by investors. With equities, dividend reinvesting helps your investment grow over time.
Your dividends will be used to purchase more shares, which in turn will generate future dividend income. The process continues until you have chosen the time period that suits you.
Read this post to find out more about dividends. This post will help you understand that money doesn’t grow on trees, but dividends might.
Equities Compared to ETFs, Mutual Funds and Mutual Funds
There are some major differences between equity investing and other types of investments.
To really understand the whole picture, you need to know what other assets are.
ETFs
The ETF, or exchange traded fund, is an investment that tracks a specific segment of the stock market.
You are purchasing a “package”, which is made up of stocks in a particular industry or market segment. Bond ETFs can be purchased that provide specific exposure to certain segments of the fixed-income market. These include corporations, cities and national governments.
ETFs are cheaper than other funds. The downside is that companies with poor performance are not removed. The fund is not tailored to your goals.
Mutual Funds
A mutual fund is an investment pool that is managed by a money manager. It is made up of individual investors who invest their money in different securities, such as stocks and bonds.
Investors can get exposure and diversify without making any decisions. It is easier for investors, but there will be a price to pay.
The annual operating fee is generally 1% to 3% of the funds managed annually, plus any fees that the shareholder pays when they buy or sell their funds.
Mutual Funds and Exchange Traded Funds are sold via prospectus. Before investing, please carefully consider your investment objectives, risk, charges and expenses. You can obtain the prospectus from your financial advisor or the Fund Company. It contains all of this information and more about the investment company. Before investing, read the prospectus thoroughly.
Easy Way to Get Started with Equity Investing
Emperor Investments is a great way to start investing in equity. This is a great way to automate your investment and reach your financial goals.
It is not easy to choose, manage and research companies on your own. It is time-consuming and can be difficult for busy people. Emperor Investments was created for this very reason.
Emperor Investments: How it Works
Emperor Investments builds an exclusive equity portfolio based on your goals. The team can be very selective in selecting companies to add to your portfolio.
Emperor Equity Investment:
The companies you own directly are included in your portfolio.
You don’t have to worry about hidden costs, such as ETF or trading fees.
You will receive a portfolio that is more tailored to your individual investment goals.
Before you invest, you will be asked a series of questions that will help you build your tailored portfolio. The companies are selected in three stages:
Step 1: Their technology filters through all U.S. firms every quarter based on an exclusive blend of criteria. All of the companies must have maintained dividends at least for 20 years. They are expected to continue paying dividends for the foreseeable future, since they paid dividends even during the financial crises of 2007/08.
Step 2: The stock analysts of their company then dig deeper into the pool of companies that were identified in step 1. They are looking for companies that have a compelling value proposition, a strong and sustainable competitive edge in their market, and a high-quality management team.
Step 3: The first two steps will determine which companies are included in the ‘Dream Team,’ or pool of quality companies. They use another type of technology when you set a goal in their platform to create an optimal portfolio based on current stock prices and your goal.
Start-up costs are $500 and a 0.6% fee per year. There are no additional fees. Open an Individual Account, Roth IRA Traditional IRA, or a Rollover IRA.
You can find a TON of information on the FAQ page. If you have any specific questions, be sure to check out their FAQ page.
Emperor Investments can be a good choice
It is important to know the benefits you can get as an investor at the institution you choose.
Emperor Investments may be the best choice for you if you are interested in equity investing, you want to invest for the long term, and you value passive income through portfolios designed to earn dividends.
Some of the benefits of investing in equity with Emperor Investments include:
PURE EQUITY PROPORTFOLIOS: You portfolios will only contain 100% stocks and never ETFs.
All-in-one management fee: only 0.6% per year, no other fees are involved.
PERSONALIZED PROFILE: Your portfolios will be tailored to suit your investment preferences and financial goals.
Reinvesting dividends is a great way to meet long-term goals, and you can take advantage of compounding.
Automatic Rebalancing*: Your portfolio will be monitored regularly and optimized in order to keep you on track.
Want to set up your portfolio to help you reach your financial goals in the future? Take the Emperor Investments onboarding questionnaire to get a sample of a portfolio.
*Rebalancing/Reallocating can entail tax consequences that should be considered when determining a rebalancing/reallocation strategy.
Final Thoughts
You should now be able to understand equity investing, and how it could help you reach your investment goals.
Dividend payments are a great way of building a strong portfolio. They can grow your portfolio and help you achieve your financial goals.
