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What's the best type of investments that beginner investors should look at when building their portfolio? is a building a dividend portfolio a good idea?
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For me as a small base. I will go for individual stocks. Diversify mean average returns. If I have 20k I won't go 5k for 4 stocks. I will go 10k for 2 or 20k for 1 stock.
If don't know what stock to pick. Then it comes back to educating and learning one self.
No one will take care of yur money more than u do. If u can take the time to get bargains to save money. Then u can take time to learn to find bargains in the market.
A basket of stocks mostly come with monthly mgmt fees etc which eats your return for the diversification and or dollar cost averaging. I believe when u buy sti etc. Dividends are deducted to pay for these MGMT fees etc.
Individual stocks come with 1 time transaction fee, 1 lump sum invest 1 shot.your losses ignoring price movement are transaction cost. U sell then another transaction cost is charged.
So if u hold on to the stock forever without selling. Your cost u pay is that 1 time transaction cost to the brokerage.
An e will charge u on an ongoing basis as long as u hold the stocks. For the opportunity to diversify with a basket of stocks is not free. This will of course eat your return. But many will like it because of the word diversify and safety and less risk.
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Yes, that could be an option for regular income. there is this course in SG 'dividend machines' curr...
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Dividend portfolio requires slightly bigger capital.
I would start with capital growth.
But everyone starts small, min $10k to start a dividend portfolio I think still okay. But I would definitely want it to be 6 figures in 5 years time for dividend portfolio.