Thursday, May 6, 2021

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Stock markets are highly unpredictable. A sudden shift in price movement (upwards or downwards) is a common phenomenon. Most of these shifts are supported by an underlying logic/news. But many times, these movements take place without any reason. One such stock market movement is called “short squeeze”, where the investors expect the price to fall but all of a sudden, the stock price starts rising, putting short-sellers in a bind. 

In this article, we will be laying down a detailed description of this phenomenon along with the example of GameStop shares, and including all the important parameters that an investor should be aware of about the same. 

What is a short squeeze? 

A short squeeze is a term used in stock markets to indicate a sharp rise in the stock price, forcing a trader who previously sold short, to buy it and close their positions, thereby avoiding greater losses. This buying spree continues adding upward pressure on the stock price, ultimately squeezing the short-sellers out of the market.

A short-seller sells the shares presently and expects the prices to drop in future. If the price falls, they close their positions by buying the same stock at lower prices, thereby earning profits. But, if the reverse happens, they’re forced to buy at a higher price and bear a loss. Short sales have an expiration date. Therefore, an unexpected price rise stimulates the short-sellers to act fast and limit their losses.

How does it happen?

Suppose an investor identifies a stock which he believes is overvalued. With the anticipation of the prices to fall, he takes a short position. Instead, something happens (let’s say the company issues a favourable earnings report or there is some good news for its industry), and the stock price starts rising. The investor realizes that he is unable to buy the stock back at a lower price. Instead of sinking, the prices are climbing continuously. 

At this point, the investor should either buy replacement shares at a higher price or buy even more shares than the investor needs in the hope of selling them for profit and covering the losses. This increased buying causes the stock to keep going up forcing even more short-sellers to make similar choices, as above.

For example, if a short seller expects the stock price of company X to fall to $80 from $100, he might short the stock presently at $100, and close his position by buying the stock when the prices are less. Several days later, if the stock price jumps to $120, the short seller would have to buy the stock at $120 and incur a loss. This phenomenon, where a short seller is buying stocks to cover his loss, is referred to as a short squeeze in stock markets.

The play behind GameStop and AMC stock rise

GameStop is an American video game and gaming merchandise retailer, the shares of which closed at under $20 per share on January 12, 2021. In around 10 trading days, a series of short squeezes occurred making the stock price jump over 15 times, eventually resulting in a stock price as high as $500. A similar trend was seen in AMC Entertainment, a movie theatre chain, where the share prices jumped ~300% on January 27, 2021, closing the same at $19.88. This was now when the users of the Reddit website subgroup Wall Street Bets began buying shares.

The unprecedented rally in these stocks made the short-sellers fall into the trap of a short squeeze. These volatile price movements were not driven by fundamental factors or news about the companies. Investors had borrowed money to support their pessimistic investment. Ultimately, they had to either pay it back by buying these shares at higher prices or risking their money to further losses.  

How can one predict Short Squeezes?

  • If there is a sudden uptick in the number of shares bought, it could be a warning sign of a pending short squeeze.
  • Short Interest Percentage, the number of shorted shares divided by the number of shares outstanding, is another predictor to look at. A high short interest percentage means more short-sellers are competing against each other to buy the stock back if its price rises and it is more likely for a short squeeze to build.
  • Check the Short Interest Ratio, i.e., short interest divided by the average daily trading volume of the stock. For example, if you short 200,000 shares and divide it by the average daily trading volume of 40,000 shares, it would take five days for short sellers to buy back their shares. A higher ratio indicates a higher likelihood of short-sellers driving the price up. A ratio of five or better is a good indicator that short-sellers might panic, and it is a good time for a short squeeze.
  • Daily Moving Average Charts showcases where a stock has traded for a set period. Looking at a 50-day (or longer) moving average chart will show whether there are peaks in a stock’s price.

Betting on a Short Squeeze

  • Contrarian investors may buy stocks with heavy short interest in order to exploit the potential for a short squeeze. 
  • Active traders may monitor highly shorted stocks and watch for them to start rising. If the price begins to pick up momentum, the trader can jump in to buy a short squeeze and start gaining from a further rise in price.

Risks of Trading Short Squeezes

  • There are many stocks that moved higher after they had a heavy short interest. But there are also many stocks that are heavily shorted and keep falling in price.
  • A heavy short interest indicates that many people are expecting a price drop. It does not mean a price increase. Therefore, any trader who buys with the hopes of a short squeeze should have other and better reasons to think about the price rise.

Protecting yourself against a short squeeze

  • Place stop-loss or buy-limit orders on your short positions to curb the damage. 
  • Hedge your short position with a long position, i.e., buy the stock (or an option to buy the stock) to take advantage of rising prices.

Wealthface is a new age investment management platform, providing easy and affordable tailored solutions for the long-term wealth creation of its clients. It is a one-stop online solution to all kinds of investors, regardless of financial status, geographic location, gender, and age group. Putting the client’s interest first and eliminating the conflict of interest between the broker and the client, the company also plays the role of a fiduciary investment advisor. 

Allowing the investors to finance their funds in globally diversified portfolios through cutting-edge technology and years of experience, Wealthface always focuses on minimizing the risk and maximizing the returns to create a bright and wealthy future for them.

Saving for a retirement in normal days can be daunting, so how about saving during a pandemic? Wealthface’s CEO, Bilal Majbour, tackles the topic, highlighting alternatives.

“All of us know how important it is to save for our retirement and most of us had set a goal when and where we would like to retire.

The best thing to do when it comes to saving for retirement is to start early and set aside 10 to 20% of your salary every year, yeah that’s right. The percentage depends on the age you have set for your retirement.

During the pandemic things have changed, many people lost their jobs. After being laid off some people decided to change the sector that they are working in, this being a new decision influenced by the pandemic, while others have decided to just take a break or even go back to school and study online to widen their chances of getting a new job and do different things in life.

Some people were used to save for their retirement nonstop, equally year after year. For them, this situation came as a shock and panic was the master of the situation, leading them to poor circumstances evaluation.

It is not easy to suddenly see the impact of the pandemic on our finances and especially on our overall financial goals. Whereas it is true that a career break can totally affect our saving, the key remains in acting and evaluating your financial situation so you plan things moving forward and get back on track, allowing you to do a full due diligence in your financial situation and understand your current situation. These efforts will enable you to make some changes and take some actions that guarantee you a safe retirement.

Let’s be realistic, if you were leading a limited budget lifestyle and you were able to save more for your retirement this should not affect you like those leading a more lavish lifestyle. Controlling your spending is one of the solutions that we need to take into consideration because it is never too late to do it.

Better late than never.

There are also several options and social impacts in place, that’s why we should prioritize things based on one’s own life interest and current social situation.

When it comes to couples, they can split responsibilities; one of them can focus on raising their children while the partner is the one now working so they can balance their life differently. No harmful intentions here, but this might be something good for their family.

As for people who want to learn new thing, they might want to pursue a master’s degree or learn something new to get more chances in their career.

Delaying things does not mean not doing them! You should keep saving, maybe at a lower rate, or postpone it for sometime, but you should never stop it. This journey will secure your retirement, allowing you to depend on yourself and no one else.

At the end, we know that a lot of us panic when it comes to financials or we don’t know what to do, that’s why it is always good to get advice from a professional. They will understand what we are going through and help us plan things better and come up with a strategy that suits our financial needs.

I would like to share some final insights that keep me going, I hope they will do the same for you:

  • Spend less
  • Start investing
  • Keep investing in yourself
  • Get professional advice
  • Diversify your investments
  • Set a retirement goal.
  • Be persistent
  • Do not give up

In layman’s language, we all know trading means to buy and sell stock from and to the market, but what most people are unaware about is the rules to become a successful trader. One should always remember it is not about WHAT you are trading in, it’s about HOW you are doing it.

A successful trader is a disciplined trader. We may think it is easy to trade by simply buying and selling at the lowest and highest prices respectively, but there is more to it. Trading is risky. Therefore, to overcome the element of risk and be successful in day trading, one must be disciplined and follow the rules of this beautiful game. 

If you are new to trading, then just breathe in and let the rules guide you through!

Rule 1: Make a proper trading plan

It is undoubtedly, the most crucial part of trading. The reason why the majority of the traders fail to make money out of trading is due to their lack of planning. Having a plan is as important as having money to trade. So, don’t skip it.

Planning doesn’t need to be anything fancy. It means to set some rules for yourself, follow your strategy and evaluate what you have been doing or plan to do.

Rule 2: Strive to gain knowledge

It is inevitable to have a thorough research before you put in your money. The markets change every day, making it very important for the trader to stay updated about the trends and keep knowledge about the industry.

There is no such phrase as “too much knowledge”. Reading, analysis, and planning can make you a successful trader. 

Rule 3: Know your trading capital

 One should always know how much they are ready to lose, and that will be the amount that they should be investing in markets. Not a penny more, not a penny less. It is required for a person to know his finances and invest accordingly. The rule is to not invest more than 5% of the money you have.

The trading money should be kept separate from the other expenses and emergency funds which will be needed in your future life. A smart investor will never risk all his trading capital at once.

Rule 4: Maintain discipline

More than anything, it is crucial and beneficial to have a consistent and disciplined trading strategy. Only then can one see a positive count of money flowing in. 

Being disciplined means to follow the plans and strategy religiously and without fail. Losing and winning is a part of trading. Selling the shares because one incurred a loss is the game of a poor trader. The market rewards the disciplined players and kicks out the rebel.

Rule 5: Never be greedy

Never let greed drive you and your game. It only takes you deeper into the well and makes you fall hard on your face. 

The market is very fluctuating. If you don’t play the game properly, you can be the richest person at one minute and be the poorest in the next.

Rule 6: Don’t compound the losses

One must always keep a limit to tolerate their loss. The level of tolerance can only save you from getting deeper into the losses. On the other hand, it is absolutely fine to incur a loss, it only helps one to learn the game better. 

A smart investor’s move is to apply for a “stop-loss order”. This means the stocks will automatically get sold after the prices hit a point. It can be done through the broker, or one can do it on their own if the game is played by himself online.

Rule 7: Price target

It is never feasible to set a price target. This means one must never sell the stocks or buy once the target price has been hit. Let the price run wild. It is never a wise choice to exit after the price hit the target.

Rule 8: Be realistic

It takes time to build a strategy and methodology which is sound, and effective only if it is based on realistic facts and plans.

Is it possible to earn a 35% return in a year? Yes, it is! 

Is it guaranteed? Absolutely no!

One should never bank on one investment making unreasonably good returns and don’t fall into a pattern of wishful thinking. 

Rule 9: Take help of technology

Nowadays, people prefer to do trading online, rather than involving the brokers.

There are software and apps which help the trader know the game better. 

Wealthface is a reliable digital platform for investment, following the well-known back-tested algorithm which provides gripping and profitable schemes for investment and helps you grow your wealth in the long term. 

The plan of action is easy, transparent, and has only three steps. The key features delivered are:

1) commission-free trading, 

2) expert advice from the in-house experts having credentials from the world’s most prestigious institutions,

3) a complimentary service of auto rebalancing of accounts, and

4) buying of fractional shares and so on

Wealthface offers different pricing categories with their exclusive benefits. Start your investment journey with us today! 

Rule 10: Enjoy the game

Though day trading is a risky and stressful business, one must learn and master this game. Most importantly, enjoy every bit of it. There will be ups and downs, joys and grievances. Don’t let this game rule your life, learn to rule the game with patience, plan and consistency. 

As one said it rightly, “the cost of discipline is less than the price of pain”.

Making this the mantra of trading, one can be a successful day trader. 

As legendary investor Warren Buffett once said, “If you’re going to do dumb things because a stock goes down, you shouldn’t own a stock at all.”

 

Losing financial security can be the biggest fear and the worst nightmare of any working person. A poor economy sparks the hint of unemployment. This pandemic has already given a lot of people this traumatic experience. To conserve cash, companies are resorting to layoffs by the hundreds. However, it has been seen that recently people have started to rebuild their belief in themselves and gained back the spirit.

Everything becomes a huge liability for those who don’t have a saving to fall back on. Those who have lost their jobs in the current crisis need to make a few fundamental changes in the way they manage their finances so that they can weather this storm. 

Understand the situation and follow the below-mentioned tips to overcome this traumatic situation.

  • Organise the expenses

The first step a person needs to take is cutting down the expenses for the upcoming few months. One must help to cover the expense with some liquid investment to avoid panic. Panicking in this situation and taking wrong steps can only worsen the situation. 

Making a short budget is very much required keeping in mind all the fixed and variable expenses like EMIs, Loans, electricity bill, food bill, education expense and so on.

  • Apply for available programs

There are several programs for the unemployed that can be opted by one, if any and entitled to. It gives a lot of benefits to the person in terms of loans and payments. The banks may provide some relief policy in case any loans need to be repaid.

 

  • Don’t jeopardise your credit reports

It is not a wise choice to apply for loans in this situation unless necessary. This will affect your financial health in the long run, putting a lot of strain on your pocket. Collateral loans or loans with lower interest can still be a better choice, in case of a dire situation. For example, gold loans are cheaper than unsecured loans. In your situation, the focus should be on minimising losses rather than maximising gains.

  1. Evaluate your goals: It is crucial to hold on your goals, be it personal or financial during unemployment. Keeping in mind the future and current prospect, one must re-evaluate their vision and manage the wealth they have in hand. Catch up on those goals once you’ve landed on a job. 
  • Source for income

Besides keeping your financial health in check, one must also look for a source to earn money. So, whether it be a job, a side-hustle, or starting a business, it’s essential to find ways to make money to sustain you for some time. Even bringing in a little bit of money can help you stretch your emergency fund to last as long as possible. But the ultimate goal is to find another job that makes you happy, with good pay.

  • Plan to use the emergency saving

If you have an emergency fund, now is the time to use it. With the monthly paycheck vanishing and hunting for jobs, one must make a proper plan and allocate the emergency savings under a different head of expense. 

The question becomes, how much should withdraw from your emergency fund each month?

It depends on how much money you have coming in, what expenses can be reduced or deferred, and how long you expect to be without work.

  • Avoid risky Investment

At this situation, making a risky investment will end up looking bad on your financial health. A financial planner will never ask one to invest in short term secured funds, giving out decent returns, because you can’t risk losing your money now.

Wealthface is a reliable digital platform for investment, following the well-known back-tested algorithm which provides gripping and profitable schemes for investment and helps you grow your wealth in the long term. The plan of action is easy, transparent, and has only three steps. The key features delivered are:

1) commission-free trading, 

2) expert advice from the in-house experts having credentials from the world’s most prestigious institutions,

3) a complimentary service of auto rebalancing of accounts, and

4) buying of fractional shares and so on

Wealthface offers different pricing categories with their exclusive benefits. Start your investment journey with us today!

  • Breaking long term investments

Avoid this as much as possible, because for a temporary problem breaking a piggy bank would be a wrong choice. Firstly, processing a withdrawal takes time. Second, and more importantly, this amount is meant to secure retired life. “You don’t generally put a piggybank back together once it’s broken—you start anew.”

  • Talk to your family

Losing your job is scary, and it can be for your children as well. Have a conversation with them. In particular, talk with them about how the family will get through this time together. While some things could change, a carefully crafted conversation about the family’s short- and long-term spending priorities is a great way to get buy-in from everyone. 

  • Maintain Insurance

In case of emergency, make sure the insurance covers it up. Having insurance like life insurance is essential for situations like these.

  1. Consult a financial planner

 In this dire situation, it is always wise to consult a financial advisor who would guide you through the time with proper plans and action.

If you get a job quickly, it may help you start saving and investing for the future. However, a little financial planning may keep you from having to settle for a job you don’t want simply because you’ve run out of money. Above all else, just remember that this time will pass. If you make smart decisions and put yourself out there, you will land a good job eventually. 

March 8 is the day to celebrate Women by celebrating women’s participation in the workforce and their contributions to the world as a whole.  

Working women have come this far from being seen as “better than two men in many cases and not half of the cost.” Therefore, to honor women in the financial industry, Wealthface chose 10 at the top of their game. Read on to discover the 10 most powerful women in the financial sector.

Here are our top 10 women in the financial industry: 

1- Abby Joseph Cohen – Partner/ Sr. U.S. Investment Strategist, Goldman Sachs

As one of the world’s most prominent economic analysts, Abby Joseph Cohen is known in the financial industry for her daring call to the U.S. stock market.

Adding to her power is her role as partner and chief forecaster for Goldman Sachs (NYSE: G.S.), perhaps the most revered and vilified firm to survive the recent economic crisis.

Cohen was notably bullish on tech stocks in 2000 and on the U.S. stock market in 2008, and critics point to her inability to predict either a dot com bubble or a housing bubble bursting. These criticisms are making her projections lightening the bars for discussion.

But if her calls have always been right, one thing is sure: Cohen and Ben Bernanke, Warren Buffett and Bill Gross are on the list of financial voices that any investor pays attention to.

2-Indra Nooyi- Former Chairman/CEO, PepsiCo

Indra Nooyi was the fifth CEO in the 46-year history of PepsiCo.

Born in India, Nooyi is one of America’s most influential executives, primarily due to her role as a female CEO who often appears at PepsiCo events wearing a sari.

“Being a woman, being a foreigner, you must be smarter than anyone else,” Nooyi said.

Since taking over the position in 2006, Nooyi has driven Pepsi to take bold (and controversial) risks, including a foray into “healthy for you” foods. Unsurprisingly, this is a significant departure for a typically drink-centric business.

After Tropicana’s acquisition, Quaker Oats, and Russian dairy Wimm-Bill-Danny, Nooyi came under fire for what some see as a losing strategy. Nooyi’s reaction, according to the Wall Street Journal: “We’re sure we’re going to reinvent the cola market in the right way.”

3- Mary Ma – Founder, Boyu Capital LTD

After serving as CFO of Chinese tech giant Lenovo and managing director of private equity company TPG Capital, Mary Ma recently announced that she was leaving TPG to set up her own China-focused private equity firm, Boyu Capital.

The private equity market in China is fast-growing, dynamic, and lucrative. Ma’s fund will go head-to-head with some of the most famous private equity companies globally, including Blackstone, Kohlberg Kravis Roberts & Co, and its former employer, TPG Capital.

4-Lubna Olaya-CEO/President, Olayan Financing Company

Since 1986, Lubna Olayan has served as CEO and President of Olayan Financing Company (OFC), the Olayan Group’s Saudi arm, which in turn is one of the largest companies in Saudi Arabia.

OFC is one of the most prominent investors in the Saudi and regional capital markets. In December 2004, Olayan was elected by the Board of Directors of Saudi Holland Bank. She was the first woman to join the Board of Directors of a publicly-traded company in Saudi Arabia. Also, she is a non-executive member of the WPP Advertising and Communications giant board.

Lubna Olayan is also a promoter of the sustainable corporate process in the MENA region. She is involved in the World Economic Forum and serves on the Arab Business Council and Women’s Leadership Initiative.

5- Ana Patricia Botín- CEO, Santander UK

In 2010, Ana Patricia Botin was appointed CEO of Santander UK and became the first female CEO of the U.K. bank.

As the daughter of the Santander Company president, Boutin was charged with restoring the credibility of the bank’s customer service and withdrawing the initial public offering.

By doing so, she can prove that she deserves to succeed her father and continue to run Santander’s 115-year-old family company.

6-Mary Callahan Erdoes-Chief Executive Officer, JPMorgan Chase Asset & Wealth Management

Mary Callahan Erdoes is the Chief Executive Officer of JPMorgan Chase’s Asset & Wealth Management division, one of the world’s largest and most valued investment managers and private banks, with $3.4 trillion in client assets and a 200-year history of trust to businesses, regime, organizations, and individuals. Since joining the firm 20 years ago, Erdoes has held senior positions across Asset & Wealth Management until becoming its CEO in 2009 and joining the JPMorgan Chase Operating Committee, its senior management board.

7- Carrie Tolstedt- Sr. V.P. of Community Banking, Wells Fargo 

In 2007, Carrie Tolstedt was named Senior Executive Vice President of Community Banking at Wells Fargo, with 6,600 branches and 120,000 employees in 39 states and the District of Columbia.

“Some think of power as force or authority,” she said at a dinner of acceptance. “I see power not as strong, but as capacity. Our capacity to perform effectively. Our capacity to use our influence and knowledge. Our capacity to mobilize the energy of others and the capacity of others.”

She has been with Wells Fargo and her predecessors for 20 years and was appointed U.S. Banker’s Most Influential Women in Banking for 2010.

8- Abigail Johnson- President, Fidelity Investments 

Abigail Johnson may have been born into a wealthy family — the company of her father, Fidelity Investments, one of the world’s largest mutual fund companies — but she always had to succeed.

After earning an MBA at Harvard University and a short period as a consultant at Booz Allen & Hamilton, Johnson entered her father’s firm as a stock analyst, the bottom of the Fidelity ladder.

Today, it oversees Fidelity’s customer-focused and client-focused companies, including Fidelity Institutional, Personal Investment, Workplace Investment, and Fidelity Institutional Services.

But with Fidelity’s chief executive, Edward C. Johnson III, in the 1980s, and no public succession plan in place, it is speculated that Johnson is poised to take on the company’s top management role.

9- Gail Kelly- CEO, Westpac Commercial Bank of Australia

Gail Kelly is regarded as Australia’s 39’s most prominent businesswoman and was the CEO of Westpac, the second-largest bank. But she is retired now. 

Kelly started her banking career as a teller, earned an MBA while pregnant with her oldest daughter, and continued her impressive career as a men-dominated industry leader. She has enjoyed a fast-track banking career, mainly due to her management abilities and remarkable success in enhancing banking profitability and raising the bank’s assets.

But her dramatic rise was not without controversy. Increased interest rates on loans from her bank, along with a move to send offshore jobs, have provoked much disdain from the Australians.

10-Christine Lagarde- Managing Director, International Monetary Fund 

As French Minister of Economic Affairs, Business, and Welfare, Christine Lagarde was a top official in Europe’s most strong economies.

But with her appointment as the new chief of the International Monetary Fund (IMF), she has become one of the most influential global finance people.

Lagarde was at the forefront of the Greek bailout talks and is known for its strong emphasis on fiscal responsibility, but has been blamed for mishandling the European debt crisis from the outset. She has recently urged the European Central Bank to take further steps to stabilize the Eurozone economy.

With French banks holding the highest exposure to Greece — an approximate €65 billion held by the Bank for Foreign Settlements (BIS)—Lagarde faces unprecedented turmoil in Europe that presents challenges to the IMF, the European Union, and the European Central Bank.

Finally, women are also much more likely to feel that prioritizing work – life balance — including engaging in flexible work programs such as maternity leave and flexible work schedules — will compromise their ability to excel at work.

So, you have never ever invested your money in shares, funds or any other financial instrument? Are you planning to kickstart your new journey as an investor? Don’t know how to start and where to invest? If so, then this post will serve you well. Here, we strive to provide a 101 guide of investing for a beginner. So, settle down and read!

Earning and accumulating the wealth is one thing, while growing the wealth is another. However, growing the wealth is important as that allows one to achieve financial stability. This wealth can be beneficial for people to tackle unforeseen difficulties and during the retirement phase. However, getting started as a beginner could be potentially daunting. Before we dive into the discussion, let’s first understand the basics of investing.

What is investing?

The definition of investing may vary from one person to another. Investing simply means how you take charge of your financial security. Besides growing your wealth, it will help you generate an additional stream of income that can support you in your retirement phase.

There are different kinds of investment options like stocks, ETFs, bonds, or real estate, etc that will provide either growth or income or both. Some people invest with an aim to achieve profit and multiply their wealth in short span of time, while some people invest to reap future benefit.

However, in this context, investing can be defined as “putting money into a financial product, shares, property, or a commercial venture with a desire to attain a significant amount of profit”.

Investing for beginners simply means committing capital to different types of assets with the expectation to generate profit from these in the future.

Why Investing is a great option?

There are several perks of investing. Hence, you should start investing as early as possible. Here are some points that accentuate on the importance of investing for beginners:

  1. Higher Returns on Investment (ROI)

Investing funds in an asset involves a transaction. The investor does not use the funds in the present to meet his current needs and rather, he puts his money in a financial instrument for some higher utility in the future.

  • Investment in stock can lead to returns through two ways – one could be through capital gains and one could be through dividends.
  • Investing in a bond may benefit the investor in the form of regular payouts or coupons.
  • An investor can benefit from investing in real estate through capital gains and rental income.
  1. Retirement Plan or FIRE

There’s no arguing with the fact that most people take interest in investment solely for retirement purposes!

As most people rely on their salary to fulfil their lifestyle needs, it becomes potentially daunting to sustain their lifestyle post retirement. Hence, investment can prove as a better alternative to people looking to retire with ease. So, everyone must consider investing a part of their income to ensure they must get all they need in their retirement years.

  1. Tax Efficiency

Those who invest consistently are able to save on taxes. The government has reduced their attention towards funding their citizens’ retirement years, however they have created various accounts that can be funded by the citizens to support them in their retirement phase. Hence, investing could be helpful in saving taxes as there are accounts such as RRSP, TFSA, 401k, Roth IRA and others.

  1. To Beat Inflation

If you want to beat inflation, investing is necessary! If you think you won’t invest money and leave it in your savings account, the money will decline as the inflation will eat away the value of your money.

Nowadays, the education and healthcare expenses are increasing much faster than reported inflation. In such a scenario, you should aim at growing your money so that you can live stress-free in such periods. Investing is the best option to keep you prepared for the unforeseen events.

  1. Reach Your Financial Goals

When it comes down to achieving financial goals, there’s nothing better than investing!

When an individual grows through life, there are needs that generally arise. And one of the basic needs is buying a house. Even if a bank or any third-party funds a house through a loan, then it will require a significant amount of down payment. When you invest through a mix of assets, you can easily build up the corpus needed for the down payment. Similarly, you can accumulate wealth to meet your other financial goals.

How to Get Started: Investing for Beginners

It can be tedious and confusing to start investing as a beginner. However, if you follow the right steps, it’s a cakewalk.

Here are some ideas on how to proceed investing as a beginner:

  1. Start crafting your investment plan: Yes, there’s no point to start a journey if you don’t know the destination! Hence, you should have a goal to achieve and according to that you can plan. However, invest according to your appetite. Make sure to evaluate how much capital you actually want to invest.

In fact, you must also plan the ways in which you will invest regularly. And it depends on you, whether you are planning to make weekly or monthly contributions.

  1. Start Tracking: Make sure you begin tracking all the expenses related to pursuing your education in investing. Investing is going to a part of your life, so it is incredibly important for you to keep a record of your expenses. This would ultimately help you to maximize the profits.
  2. Choose the Type of Investment: After going through point 1 and 2, you should then research to get a fair idea of what type of investment you really want to pursue.

Let’s take an example to understand!

If you are considering ETFs, make sure you check out the information and analysis websites that will help you learn about ETF investing.

  1. 4. Keep Investing: There’s no secret to benefit from investing. Learning about investing for beginners could be potentially daunting and it can never be done in a day. Just learn gradually and keep investing to see what works for you and what doesn’t.

Make sure you just relax and don’t think too much. Just keep learning and investing! And the best part is that when you enroll in the “school of investing”, you are likely to earn your high school certificate in “making a significant amount of money”. You can also take professional help and consultation from Wealthface.

How Wealthface can investing for beginners a Lucrative One?

As a beginner, do you want to generate more profit with minimum knowledge? If so, you’ve reached the correct destination!

Wealthface is a one-stop online investment company that helps all kinds of investors, irrespective of their age group, location, financial status, gender, and more. With extensive experience and expertise, we provide high-quality investment services that perfectly cater to each kind of investor in a fully transparent manner.

With a dedicated and experienced crew of financial advisors, we are always here to assist you so make you can make your investment for a beginner the right one.

To know more about us, visit wealthface & make the best investment for beginners, today!

 

 

Emotions are a highly valuable asset in people’s lives, but fails to remain so, and becomes a liability when it comes to investing. 

25% of traders and investors say- Automate your investments, crunch the available data, do your research, and earn profitable returns.

Others, the majority 75% of traders and investors – Surrender to your emotions while fighting tooth and nail for better returns.

As humans, we always tend to be risk-averse and look out for certainty of returns. Living in today’s hyper-connected world where media is so readily accessible, people fall prey to bias, irrational investing, herd mentality, and emotions like fear, panic, remorse or greed, thereby negatively affecting their returns. Conversely, emotions like ‘FOMO’ or overconfidence can also be counterproductive to positive investing returns.

Simply put forth, emotional investing refers to investment decisions driven by emotions, making it difficult to stay on the track of long-term financial goals. Emotional biases can be hard to manage as they derive from impulse rather than miscalculation or interpretation of information. Therefore, in this article, we will be laying down five simple tricks to help our readers stop emotional investing and take up the path of judgemental investing.

 

1- Look at the bigger picture 

 

Every investor has a goal to achieve that made them start investing, helping them in better portfolio construction. Revisit these goals, both when the volatility picks up or moves down to track the changes and make healthy decisions. Some questions to ask yourself are:

  • Is my investment time horizon the same as it was when we built my portfolio?
  • Is my financial situation the same?
  • Is my portfolio aligned with my risk tolerance?

These answers will help you analyse the markets better, keeping inline your goals and objectives. These questions can help investors to shift their focus away from the short-term discomforts and see the big picture.

2- Do your research

We always advise investors not to follow the herd mentality and blindly listen to the advice given by other traders/investors. Every Investors Iinvestors needs to carry out their analysis before making an investing decision. No forecaster can accurately predict the market reactions. These sensational headlines are a major reason for heightened anxiety and emotional reactions, making retail investors forget their short-term goals. Remember, the performance of any one market is not the same as the performance of your portfolio. So, take everything you watch and read with a grain of salt.

3- Do not check your investments daily

Until and unless you are a regular trader who has more short-term goals, it is advised not to go through your investment portfolio daily. This act of investors adds to their stress and anxiety as the market moves up or down, thereby, forcing them to make uninformed decisions. History has been an earmark that long term returns have mostly been positive for most of the investors. By not checking your portfolio balance each day, you increase the odds of staying the course and seeing the benefits of that approach over the long term.

4- Diversify Your Portfolio

Heavy goes the old saying, “Do not put all your eggs in one basket.” Imagine what if you had invested 100% of your life savings in Enron back in the early 2000s. Well, you’d have been completely shattered as the company went bankrupt. Therefore, to minimise the risk of losses from a particular asset, spread your money among many different asset classes and different assets within each asset class. The percentage you aim to invest in each asset class, and each type of asset, within each class, is called your asset allocation, which doesn’t remain the same over time. 

Your ideal asset allocation needs to be changed and updated regularly to stay abreast with the market scenarios. This mechanism for reverting to your target asset allocation is known as rebalancing the portfolio.

5- Follow the Dollar-cost averaging strategy

 

 

This strategy is known as one of the most effective strategies to overcome emotional investing. Here, equal amounts of dollars are invested at regular, predetermined intervals, irrespective of the given market conditions. During downturns, an investor is purchasing shares at a lower price. During an upward trend, the shares previously held in the portfolio are producing capital gains. Since the dollar investment is a fixed amount, comparatively fewer shares are purchased when the share price is higher. This strategy helps an investor to stay in the course of investing. 

As professionals, we seldom advise our investors to not to tamper with this set strategy until a major change warrants revisiting and rebalancing the established course. 

The Bottom Line

Investing without emotion is easier said than done. As mentioned above, some of these important considerations can keep an individual investor from chasing futile gains or overselling in panic. During the times of market uncertainty, be more careful to avoid emotion-fuelled investing and making decisions based on a proper financial analysis of the asset. It is crucial to stay focused on the fundamentals and not let the panic or overconfidence blind you for making hasty decisions. All your decisions must be based out on your time horizon and risk tolerance capacity. Understanding these two factors is an important basis for rational decision-making. 

Warren Buffet very aptly mentioned, “Be fearful when others are greedy, and greedy when others are fearful.” Understand that when a piece of information is publicly available, and every investor is running helter-skelter in the chase of that particular asset, prices are sure to boil over, and it is during this time when an investor should become more cautious while paying for an asset. However, But at the same time, on the contrary, when every other investor in the market is fearful about the conditions, it is your opportunity to do your research and trust in your analysis to present a good value buying. 

Happy investing!

 

How about spending your retirement years in comfort and even a bit of luxury?

Being a retiree, you would like to prefer a place where you do not have to break the stones for matching your financial needs. Isn’t it so?

If you are wishing to further stretch your retirement money, then moving abroad might prove a wise option for you because a foreign land will not only allow you to see more of this world but also to spend a lot less money on your living.

So, which are the best places for your retirement?

If you are planning to retire overseas, then you certainly need a lot of information and guidance to help you choose the best spot for you. In this post, you will explore the list of some of the best retirement destinations in the world where you can get a lot more without burning holes in your pocket.

But before we jump straight to this main thread, have you ever thought about why early retirement planning is so important? Let’s discuss briefly about it!

Why Start Early?

It is incredibly pivotal for you to start your retirement planning at a young age. By accumulating the funds over years, you would be able to provide a comfortable retirement life to yourself as per your present income.

Let’s say you are at age 26 and planning to invest in a retirement plan. You have already started saving. Your funds will now eventually grow over time and will result in a substantial amount, which would be enough to fulfil your retirement dreams. Once you are done with your career, you will already have enough money to lead a comfortable life. Let’s know the key benefits of planning for early retirement!

  • You will be able to tackle all the financial obstacles in your retirement
  • You could also contribute to your family.
  • You will raise enough funds to lead a comfortable retirement
  • Saving money early means you will be able to spend more later.
  • Early retirement savings will allow you to have better potential results in the future.
  • You will be able to reduce your income taxes.

Now that you realize the importance of early retirement planning, let’s have a look at the top best retirement spots in the world to make a move!

Top Destinations in the World For Retirement

Panama

Do you want to enjoy the beauty of both the dazzling beaches and majestic mountains? Panama offers both the worlds for the retirees. The friendly locals, highly affordable cost-of-living, spectacular ocean views, cozy weather, hurricane-free environment, well-paved roads, top-notch metro system, and worry-free healthcare – all make Panama City probably the topmost retirement destination in the world and one of the best spots for easy and affordable living. Besides, individuals who get a retirement visa can leverage a plethora of benefits, such as discounts on airfare, local transportation, entertainment, hotel stays, and certain exemptions in taxes. Pretty amazing, right?

If we talk about traveling overseas, many airlines in Panama serve the purpose. Although it is extremely easy to travel in the city, it also boasts reliable inter-city buses as well as domestic flights. You will find everything here from cultural institutes, galleries, museums, to sports clubs and fitness events. Moreover, the most exciting thing about this destination is that it is extremely beneficial for the people holding Pensionado or Pension visa. Various discounts and offers are provided to individuals holding Pension ado like:

  • 25% off on power bills
  • 25% off on plane fares
  • 20% off on medication
  • 50% off on movie and show tickets
  • 25% off on meals at restaurants, and so on.

To avail all such discounts, you must have a pension of at least $1,000 per month.

Even after providing all such amenities, Panama is highly affordable and accessible.

Costa Rica

There exists a country on the volcanic isthmus between North and South America, which is so rich in the natural beauty that it can melt your heart like never before. If you wish to lead a healthy lifestyle after your retirement, then Costa Rica is an ideal choice for you. Earning higher scores in amenities, desirability, and healthcare, this country attracts millions of foreign residents across the globe. Let’s have a look at some of the country’s attractive features!

  • Tropical climate
  • Welcoming and friendly locals
  • Affordable and quality healthcare services
  • Mesmerizing natural beauty
  • Pocket-friendly cost of living
  • Myriad real estate options
  • Top-notch transportation services
  • Various entertainment spots
  • Quality grocery stores
  • Lower consumer prices: 24% lower than the US on average
  • Lower rent prices: 54% lower than the US on average
  • Lower property tax rates than the US

Mexico

Combining modern amenities with the balmy climate, Mexico has been one of the topmost retirement spots in the world for over 50 years. In terms of modern conveniences, the country will never disappoint you with its well-maintained highway networks and high-speed cell phone and internet services. Besides, its proximity to the US, trade and cultural ties, easy establishment of residential, highest ratings on entertainment and other amenities, higher desirability, welcoming locals, abundant of activities to take part in (clubs, events, happy hours), and budget-friendly cost of living – all make it one of the most preferred choices among ex-pats.

Retirees can either get a temporary resident visa or a permanent resident visa as per their choice. But, what’s the difference between the two?

  • The temporary resident visa is good if you wish to stay in the country for up to 4 years. You can only register for the visa by meeting minimum asset requirements or minimum monthly income requirements or by owning a property in the country. The visa requires an income of $1,600, or $82,000 in the bank.
  • The permanent resident visa is good if you wish to stay for the long term in the country. However, it possesses higher assets as well as income requirements. The visa requires $102,000 or a monthly income of $2,000in the bank.

Ecuador

Truly known as the land of diversity, Ecuador is located at the top of the South American continent. Named after the Equator line, this small country is an eclectic blend of climate, culture, as well as affordability to make your retirement dreams come true. Whether you wish to have fun at the beaches, admire the breath-taking mountains, or explore the countryside – Ecuador has that all to rejuvenate your soul and mind. Let’s have a look at some of its best features that make it the preferred choice among retirees!

  • Average annual temperature: 67°
  • Home rental prices: 70% lower than the US
  • Consumer prices: 40% lower than the US
  • Money-saving benefits to retirees: Discounts on entertainment spots, transportation, water bills, electric bills, and deductions in certain taxes.
  • 1,200 miles of beach
  • Boasts the world’s highest active volcanoes
  • Mesmerizing Galapagos islands

Malaysia

If you are rummaging for a buzzing retirement spot with idyllic beaches and islands, then Malaysia is truly a wise choice for you. With the pristine ancient rainforests, beautiful landscapes, affordable cost of living, and an abundance of amenities – you will find a plethora of reasons to call Malaysia your home. Some of the country’s key features are:

  • Consumer prices: 50% lower than the US
  • Weather: Tropical with 82° F all year
  • Air services: Direct flights to more than 30 countries from Kuala Lumpur
  • Plenty of international grocery stores
  • Kind and welcoming locals
  • Lower medical expenses, especially of surgeries.
  • Diverse cuisines
  • Pristine jungles, islands, and beaches.

Visit Wealthface today & plan for these viable retirement locations and reinvent yourself as well as your life!

Are you thinking about retirement? You are not alone because most of the retirees are either planning or already have it. Whether your retirement is right on the verge or years away, it is extremely pivotal to be cognizant of the best places to retire that can assist you in making hard-earned money. While most people prefer to stay in the same state or region after their retirement, many other people wish to try a completely different place. Relocating to a different retirement spot might allow you to save significant money and enhance your quality of life. So, how do you know which are the best places to retire?

In order to help you to narrow the choices, we have highlighted some of the best retirement destinations in the US that offer attractive benefits for retirees. Although there are a plethora of factors that determine which cities are well suited, we have included some of the most common factors, such as:

  • Desirability
  • Retiree taxes
  • Job market
  • Housing affordability
  • Quality of health facilities
  • Happiness of residents

Before we check out the list, have you ever wondered why setting a retirement plan is important at a young age? Let’s discuss briefly about it!

Importance of Starting Early

Whenever it comes to planning for retirement, it is never too early to start. The earlier you start your retirement savings, the more potential it will have to grow. Besides, you will be able to leverage the benefits of compound leanings because it helps you in mitigating your financial burden by avoiding the investment of lump-sum amount for the retirement fund. Being a young person, you will have a lot of time on your side. So, why not use that time to use the power of compounding?

Let’s understand this with a simple example. Suppose you are at age 26 and you started putting $300 into your retirement savings plan every year. Besides, your account earns an average of 8% per year. If you will continue this saving for the next 40 years, you will be able to accumulate over $1 million by the age of 65. However, if you will wait for 10 years to start saving, you would not be able to reach such an amount by the age of 65.

Other benefits of starting early are as follows:

  • Saving money early will allow you to spend more later.
  • You will gain financial flexibility as well as stability.
  • You will be able to multiply your money.
  • Early retirement savings means better potential results in the future.
  • You will be able to mitigate your income taxes.

Which Regions are the Best in the US?

1. Sarasota

Located below Tamps, Sarasota is one of the best places to retire in the US. The city’s white-sand beaches compel many retirees by offering all water adventures, such as boating, swimming, and fishing. The pristine water and the dazzling sands of the beaches rejuvenate your retired life like never before. Besides, the pocket-friendly housing costs allow the retirees to enjoy living in Florida without breaking the bank. As there is no state income tax here, one can also think of working part-time after retirement. You will certainly find a plethora of things to enjoy in this spectacular city! Let’s have a look at this data!

  • Population: 785,997
  • Taxes: No State Income Tax
  • Median Monthly Rent: $1,152
  • Median Monthly Mortgage Cost: $1,481
  • Hospital: Sarasota Memorial Hospital
  • Average Temps: 82° / 64°
  • Average Annual Rainfall: 53″
  • Share Of Population Above 60 Years Of Age: 39%

2. Fort Myers

Located in Florida, Fort Myers is one of the most popular destinations among retirees. Over one-third of its population belongs to the age of 60 or older. The city became more popular after Henry Ford and Thomas Edison built their homes there. After Edison started planting royal palm trees, it was nicknamed “City of Palms”. For all the water lovers, Fort Myers has many hotspots, such as Cape Coral, Sanibel Island, and Fort Myers Beach. You can spend your retirement years relaxing at the beach, boating, fishing, and doing various other activities in this city, that too, at an affordable price.

  • Population: 718,679
  • Taxes: No State Income Tax
  • Median Mortgage Cost: $1,416
  • Median Monthly Rent: $1,093
  • Average Temps: 84° / 64°
  • Average Annual Rainfall: 53″
  • Share Of Population Over Age 60Years: 35%

3. Port St. Lucie

Laying on the Atlantic coast of southern Florida, Port St. Lucie boasts of its spectacular beaches and mesmerizing parks, such as Savannas Preserve State Park, Hillmoor Lake Park, and Clover Park. For golfers, this place is no more than heaven. From boating, fishing to paddling and beach bumming,you can enjoy all the water adventures in the city. In addition, the reasonable cost of living, a higher score in happiness matric, and stress-free economic life make it one of the most desirable and best places to retire in the U.S.

  • Taxes: No State Income Tax
  • Population: 463,172
  • Average Temps: 82° / 63°17
  • Average Annual Rainfall: 52”18
  • Share Of Population Over Age 60: 33%
  • Median Monthly Mortgage Cost: $1,436
  • Median Monthly Rent: $1,126

4. Jacksonville

Attracting more than 9000 fresh residents over the past year (according to Census Bureau data), Jacksonville is a huge city located at the south of the Georgian state line. Its eye-popping beaches and waterways will certainly provide an adrenaline rush to the retirees. You can enjoy various outdoor activities here, such as camping, cycling, hiking, swimming, etc. The top-notch hospitals, including the branch of the Mayo Clinic, provide you quality healthcare services that you can count on.

  • Population: 1,475,386
  • Taxes: No State Income Tax
  • Average Temps: 79°/61°
  • Average Annual Rainfall: 49″
  • Share Of Population Over Age60: 21%
  • Median Monthly Mortgage Cost: $1,427
  • Median Monthly Rent: $1,059
  • Hospital: Mayo Clinic-Jacksonville

5. Grand Rapids, Michigan

Laying along the Grand River, Grand Rapids is certainly a hidden gem that wears cool weather almost for the year. The combination of the artistic community, quality healthcare services, and the budget-friendly living cost make it one of the best places to retire. The city is especially popular due to its breweries and multiple art museums like the Grand Rapids Art Museum.

  • Population: 1,050,440
  • Taxes: No Tax On Income From Social Security
  • Median Monthly Mortgage Cost: $1,253
  • Median Monthly Rent: $860
  • Average Temps: 58°/40°
  • Average Annual Rainfall: 38″
  • Share Of Population Over Age 60: 20%
  • Hospital: Spectrum Health-Butterworth & Blodgett Campuses

6. Lancaster, Pennsylvania

Located between Harrisburg and Philadelphia, Lancaster is one of the safest retirement destinations in the US. There is no shortage of Amish products, craft items, baked items, and various other necessities in the city. The city also boasts its Lancaster Central Market and the diverse collection of cuisines, restaurants, as well as bars.

  • Population: 538,347
  • Share Of Population Over Age 60: 23%
  • Hospital: Lancaster General Hospital
  • Median Monthly Mortgage Cost: $1,516
  • Median Monthly Rent: $978

The Bottom Line

Could you imagine yourself enjoying the spectacular nature around you, a sporting activity, a water adventure, or a relaxing time on a beach after retirement? You might get excited after reading the above list and want to look forward to it. Isn’t it so?

However, before you start investing in your retirement plans, it is extremely pivotal to be clearer on what you wish your retirement to look like, which is the best places to retire, and how much will it cost you. Then, you should make your move!

To learn more, visit Wealthface today!

 

By the beginning of 2020, most investors were expecting to be in the abyss, especially in terms of the Dow Jones Industrial Average (DJIA), which could not catch a height, unfortunately. The company found its contrarian catalyst and bounced back its market in the pandemic, thus lagging badly with the overall stock index finished up at 7.2% for 2020.

Some of the DJIA’s stocks experienced double-digit percentage losses, so there rises the utmost need to discuss them all to avoid any future mistakes. That’s right, we are going to talk about the worst-performing DJIA stocks in 2020. Not only this, but we’ll also discuss the do’s and don’ts of stock market investing so that you could make wise future decisions.

But before jumping to these main threads, let’s take a glance at the history of the Dow Jones Industrial Average (DJIA).

Brief History Of Dow Jones Industrial Average (DJIA)

Created in 1896 by Charles Dow along with his business partner Edward Jones, the Dow Jones Industrial Average (DJIA) or Dow 30 is the second oldest U.S. market index that tracks 30 publicly-owned and largely-established U.S. blue-chip companies. Before creating DJIA, Charles Dow created his first stock index popularly known as ‘Dow Jones Transportation Average (DJTA)’, which is the most popular criterion of the U.S. transportation sector.

Over the years, DJIA has undergone a plethora of transformations and developments. Its initial components included the industries associated with railroads, gas, sugar, tobacco, and oil. In 1916, DJIA updated its components from 12 to 20. And back in 1928, the components were further raised to 30, which are still powerful today. In 1932, 8 stocks were eliminated and replaced by new components, which included Coca-Cola.

Gradually, DJIA also updated the method of its calculation. Earlier, it was calculated by the simple arithmetic mean method, but today, the ‘Dow Divisor’ is included in the calculation.

Worst Performing Dow Jones Stocks In 2020

Although everyone buzzes about the winners, it is also instructive to have a look at the losers of the year. Let’s begin without any delay!

1. Boeing

This shouldn’t come as a surprise that Boeing’s stock is the DJIA’s biggest laggard in 2020. Due to the two fatal crashes, the company’s best-sellingaircraft – Boeing 737 Max Jet was already grounded in March 2019. Moreover, the coronavirus pandemic led to thousands of layoffs and significant production cutsas air travel reduced by 60%-70% globally. Having looked at the current condition, the airline companies would not be able to recover until 2024.

In comparison to 2019’s closing price, Boeing stocks traded down by around 43.7% in 2020.

  • Composite Rating: 6 (Weak)
  • EPS: -$7.89
  • Current Opening Price: $213.61
  • Market Cap: $118.49 Billion
  • 52-Week Range: $89 to $349.95
  • Yield: 0.00%
  • 1-Year Performance: -36.38%

2. Walgreens Boots Stock

The second worst performing DJIA’s stock is Wallgreens Boots Alliance Inc. Although there is no doubt in saying that Walgreens stores were already lethargic in 2019, the store visits get worsened in 2020 due to the digitization of shopping in the pandemic.

The company itself reported that the pandemic kept it behind with the cost of approximately $0.46 in earnings per share for its 2020 fiscal year. The company had already lost about 32.7% of shares in 2020 and the negative effects of the pandemic are more likely to persist in the first half of its 2021 fiscal year.

  • Composite Rating: 38
  • EPS: -$0.81
  • Current Opening Price: $45.05
  • Market Cap: $39.15 Billion
  • Yield: 4.14%
  • 52-Week Range: $33.36 to $59.78
  • 1-Year Performance: -16.62%

The company’s relative strength is declining, so much so, that it is at the bottom 8% of all the stocks.

3. Chevron Stock

By losing around 30% of its market value, Chevron has gained the third position in the worst-performing DJIA stocks in 2020. At the beginning of the year, the crude prices started at above $60 per barrel. However, it fell down dramatically to below $25 per barrel due to the COVID-19 pandemic, thus creating a rampant downfall for this integrated oil and gas giant.

As demands for fuel became low, the oil prices got affected terribly in 2020, and the Chevron stock shares dropped 29.9%. Although the stock gained 17.3% in quarter 4, there is no expectation for the oil prices to catch a height in 2021. Below are some data associated with the Chevron Stock!

  • Opening Price: $92.08
  • Market Cap: $175.33 Billion
  • EPS: $-6.18
  • Yield: 5.67%
  • 52-Week Range: $5.60 to $117.69
  • 1-Year Performance: -21.78%

4. Intel Stock

Dropping more than 21% in 2020, the chipmaker Intel Corp. also faced financial downhill, which is unlikely to be resolved in the next year too. In July, Intel stock shrank 21%, whereas, in December, the company lost 6%.

  • Opening Price: $52.45
  • Market Cap: $211.66 Billion
  • P/E Ratio: 10.13
  • EPS: $5.10
  • EPS Rating: 86/99
  • Composite Rating: 41
  • Yield: 2.56%
  • 1-Year Performance: -12.37%
  • 52-Week Range: $43.61 to $69.29

5. Merck Stock

Losing around 11.5% of its market value, Merck & Co. Inc. experienced a significant downfall in 2020, thus keeping investors away this year. Moreover, the company doesn’t even have any space in the COVID-19 pandemic vaccine. The Merck Stock has:

  • Opening Price: $84.37
  • Market Cap: $210.07 Billion
  • P/E Ratio: 18.34
  • EPS: $4.53
  • EPS Rating: 86
  • Composite Rating: 42
  • Yield: 3.13%
  • 1-Year Performance: -7.26%
  • 52-Week Range: $65.25 – $92.06

6. JPMorgan

With the 32.5% fall of the stock in 2020, JPMorgan Chase (the largest U.S. bank in terms of market value) is another worst-performing DJIA stock in 2020. As the coronavirus pandemic forced the central bank to keep the interest rates lower, it led to a decline in interest income, thus threatening the profitability of JPMorgan.

  • Opening Price: $135.97
  • Market Cap: $414.62 Billion
  • P/E Ratio: 17.75
  • EPS: $7.66
  • EPS Rating: 72
  • Composite Rating: 42
  • Yield: 2.65%
  • 1-Year Performance: -0.04%
  • 52-Week Range: $76.91 – $140.76

Do’s & Don’ts For 2021

Do’s

  • If you are not aware of how to research in order to find the best stocks, then just stick to index funds because it will provide you with diversification, that too, without breaking your bank.
  • Make sure that your portfolio is diverse because it will provide multifaceted protection against many risks.
  • As stocks in 2021 could be more unstable and volatile because of the pandemic, make sure to keep plenty of cash in your hands.
  • Always invest while considering the larger picture in the future. This simply means you should always invest for the long-term because it brings you significant wealth.

Don’ts

  • Do not invest blindly based on any free recommendation or tip.
  • Do not take unnecessary risks. Safeguarding your money is more important.
  • Do not bring emotions while taking decisions, no matter how much you like a company or enterprise.
  • Do not keep unrealistic expectations because 2021 could be highly unpredictable.

The Bottom Line

If we talk about the current year, not every one of the DJIA’s 30 components has been able to fight the black year to date. Believe it or not, the DJIA’s worst performances in the past year have forced the company to start correcting its mistakes for future years so that it would not have had to suffer such big losses.

To learn more, visit Wealthface today!

Do you intend to invest in stocks of big tech giants? Well, you’ve made the right choice as tech stocks are sure to reap good ROI. Are you looking for the most profitable tech stocks to invest on? Then, this post will serve your needs. In this post, you can find information about the top tech stocks. So, let’s begin.

Owing to Covid-19 restrictions, we saw a paradigm shift to digital life. There has been increased adoption of technology to facilitate studies, work, shopping and even entertainment via digital modes. In such a scenario, companies such as Facebook, Microsoft, Alphabet, and Apple have grown manifold times. This, in turn, skyrocketed tech stocks and they’ll continue to reap potentially higher rewards in 2021.

Before we glance at best stocks to buy now, let’s dive into the basics.

What are Tech Stocks?

The stocks of companies operating in the technology sector is known as a tech stock. Tech stocks belong to the companies that are engaged in selling tech-based products or services. These stocks are publicly traded shares, or simply the shares of ownership available for tradinng. Let’s explore some of the spheres of investment in tech stocks:

  • Artificial Intelligence
  • Smartphones
  • Computers & Software
  • The Internet of Things (IoT)
  • Cybersecurity
  • The Cloud
  • Chip Makers
  • Component Makers
  • Self-Driving Technologies
  • Blockchain
  • SaaS (Software-as-a-Service)

Importance Of Technology In The Stock Market

A cursory glance at the history will reflect how tech industries have brought a paradigm shift in the productivity of the stock market.

  1. Rise of Dot-Com Provided Easy Accessibility: Due to the internet revolution prevailing in the 1990s, the websites dedicated to selling products or services surged immediately. This led to the rise of various dot.com companies in 1999, such as, ‘boo.com’, and ‘lastminute.com’. And soon, the ‘dot.com bubble’ started to expand. The result of which is that almost every individual has quality access to the internet today, which was not the same back then.
  2. Marketing Through Social Media Platforms: Today, various social media platforms allow companies to market themselves. The positive rumours about any company on a social media platform can enhance the revenue generation as well as the brand’s identity.
  3. Super-Fast Trading: With high-speed computers, it has become possible now for traders to deal in nanoseconds. Owing to the high-speed predictions within a small fraction of time, traders can decide what stocks to buy and what stocks to sell for extensive positive results in the future.

Best Tech Stocks To Buy In 2021

Below are the best stocks to buy now!

Apple (AAPL)

Undoubtedly, the largest traded company in the world is none other than Apple. With its revolutionary and iconic iPhones and iPads, the company has set a gold standard for all other rivals. Let’s have a look at some of its data!

  • Market Value: $2.2 Trillion
  • Dividend Yield: 0.6%
  • Profit Ranking In The Past 12 Months (As Of December 2020): $57.41 Billion

Now, consider these important aspects:

  • Increasing Production: According to the recent reports from Nikkei Asia, Apple is planning to raise its iPhone production by around 30%, that too in the first six months of 2021.
  • Wider Range: Besides keeping itself ahead in the world of the electronic market, the company is becoming much more than just a mobile manufacturer. The Services segment of the company, which includes paid content like App Store, iTunes, and Apple TV, is currently representing approximately 19% of the total revenue generated by the company.
  • Benefits From Accessories: In addition to manufacturing iPhones and iPads, Apple also receives greater benefits from various other accessories like AirPods and the Apple Watch.

AAPL (Apple) could be one of the best stocks to buy now because of its dominance on the market and extraction of extra cash through various services in 2021.

Adobe (ADBE)

With the ability to grow by 10 to 20 percent per year, Adobe is arguably the most appropriate stock to buy when it comes to endurance. Have a look at these aspects:

  • Market Value: $240 Billion
  • Revenue In 2020: $12.9 Billion (15% Increased From A Year Ago)
  • The Adobe Creative Cloud (which includes services such as, Dreamweaver, InDesign, Illustrator, Acrobat Pro, Premier, and Photoshop) accounts for around 20% of growth year over year. Thus, it is the most creative revenue driver for the company.
  • Being a cloud-based SaaS company, ADBE is likely to grow earnings more quickly while going forward in 2021.
  • Owing to the heavy digitization because of the pandemic, the company will continue to boom and expand in the upcoming fully digital world. Thus, it can be considered as one of the best stocks to buy now!

Salesforce

Best known for its suite of cloud-based computing solutions, Salesforce builds custom software with third-party developers. Below are the reasons why Salesforce is one of the best stocks to buy now:

  • Market Value: $210 Billion
  • Gains In The Past 5 Years: 190%
  • Year-To-Date Profit For CRM Through Late 2020: Approximately 40%
  • With around $200 billion, Salesforce has already entered the top categories of the tech sector.
  • The revenue growth for the company was set to 20% in 2020 and then another 20% for the next year too.
  • The company strictly holds deep pockets as well as enriched ambitions to become the dominant tech stock like Apple and Microsoft.

Microsoft (MSFT)

Including trillion-dollar stocks, Microsoft is undoubtedly the software giant that smartly seeped into the future world with its cloud-based and mobile-friendly solutions. Have a look at some of the aspects that makes Microsoft one of the best stocks to buy now!

  • Market Value: $ 1.7 Trillion
  • Dividend Yield: 1.0%
  • The Azure segment of the company is the 2nd largest cloud platform in the world. According to its October earnings report in 2020, the revenue growth was at an incredible rate of 48%. It simply proves the strength of Microsoft company.
  • The Xbox content and services of MSFT generated a revenue of 30% more in the latest quarter.
  • MSFT also has $138 billion in cash on its books, thus ensuring the unrivaled stability of its stock for the next many years.

Other valuable tech stocks

Apart from these giants, there are many more tech stocks that are worth investing:

  1. NortonLifeLock Inc. (NLOK)
  • Price: $20.38
  • Market Cap: $12.1 Billion
  • 12-Month Trailing P/E Ratio: 4.0
  1. Xerox Holdings Corp. (XRX)
  • Price: $23.03
  • Market Cap: $4.6 Billion
  • 12 Month Trailing P/E Ratio: 5.6
  1. Synnex Corp. (SNX)
  • Price: $82.93
  • Market Cap: $4.3 Billion
  • 12-Month Trailing P/E Ratio: 8.8
  1. Coherent Inc. (COHR)
  • Price: $140.62
  • Market Cap: $169.4 Billion
  • EPS Growth: 966.7%
  1. Qualcomm Inc. (QCOM)
  • Price: $149.74
  • Market Cap: $169.4 Billion
  • EPS Growth: 514.3%
  1. First Solar Inc. (FSLR)
  • Price: $91.77
  • Market Cap: $9.7 Billion
  • EPS Growth: 400%
  1. Cloudfare Inc. (NET)
  • Price: $81.81
  • Market Cap: $25.1 Billion
  • 12-Month Trailing P/E Ratio: 345.3

Final Thoughts

Although 2021 might be full of unpredictable market events, being an investor, you should always focus on the bigger picture. Digital transformation is one of the biggest trends that is more likely to get bigger in the coming years. Choose any of the best tech stocks that can help you to dominate the market world and garner high ROI.

If you are confused in selecting the best tech stocks, then choose us as your wealth management partner and receive bespoke financial advice. To learn more about the tech stocks for 2021, visit Wealthface today!

Planning to invest in S&P Index Funds in 2021? Looking for the best options to consider? Then, this post will guide you well. Here, we have enlisted the best S&P Index funds for 2021.

When it comes to choosing an investment instrument that promises immediate diversification, mitigated risks, and reduced costs of investing, index fund is the market’s favorite.

One of the best index funds is based on the Standard & Poor’s 500 Index (S&P 500). As S&P 500 index funds include a plethora of globally variegated American companies across each enterprise, they are a low-risk investing stock. Seasoned traders as well as new investors are usually eager to invest their money in S&P 500 index funds because they receive a diverse portfolio, that too, at the marginal cost. If you are also on the same page, then this post will certainly help you out a lot.

But before heading to the list, let’s understand briefly what exactly are ‘S&P 500’ and ‘index funds’!

What Is The S&P 500 Index?

The ‘Standard & Poor’s 500 Index’, or simply the ‘S&P 500’, is a stock market index used to measure the stock performance of 500 large-cap U.S. companies listed on the stock exchanges. These listed companies make up 80% of U.S. equity. S&P 500 Index is one of the most prevalently followed equity indices and is often considered as “the market” because of the inclusion of stocks that are stretched to all market sectors.

Calculation For S&P 500

As the S&P 500 utilizes a market-capitalization-weighted method, the formula for calculating it is as follows:

Company Weighting in S&P=(Company Market Cap)/(Total of all Market Caps)

What Is The Index Fund?

An ‘Index Fund’ is a mutual fund that imitates a stock market index like BSE Sensex, NSE Nifty, etc. They have also been known as ‘index-tied’ or ‘index-tracked’ mutual funds. As index funds are not actively managed, they incur lower costs and generate higher returns than the actively managed funds.

Their primary aim is to maintain uniformity in the market rather than outperforming the market. Choosing the best index funds can help an investor to keep his/her risks in the investment portfolio equitable.

Key Qualities of the Best S&P 500 Index Funds

You should look for the funds that have:

  1. Lower Expense Ratio: One of the most important aspects of index fund investing is lower investment costs.
  2. High AUM (Assets Under Management): An index fund having a high AUM doesn’t only indicate the quality of the assets but also the benefits, especially when we talk about liquidity in ETFs.
  3. Close & Precise Index Tracking: The index fund that delivers top-notch performance by closely tracking the index brings out extensive positive results.

Topmost S&P 500 Index Funds in 2021

Now, let’s have a look the best S&P Funds for the year:

1. Vanguard 500 Index (VFIAX)

Beginning its trade in 2010, Vanguard 500 Index is the pioneering fund in the market that exposes your portfolio to a plethora of mega-cap U.S. companies, such as NVIDIA Corp., Microsoft, and Mastercard. With hundreds of billions in the fund, Vanguard’s S&P 500 Index Fund is a good fit available for various investors. Let’s look at some of its data:

  • Expense Ratio: 0.04%
  • P/E Ratio: 25.7
  • Annual Dividend Yield: $5.35 Per Share
  • Total AUM: $157 Billion
  • Shares Per Day: Above 169,818
  • 1-Year Return Rate: 11.42%
  • 3-Year Return Rate: 38.28%
  • 5-Year Return Rate: 76.85%

Besides, Vanguard created VFIAX (the Admiral Shares Fund) fortunately, which has a lower expense ratio of 0.04% as compared to the older share funds.

2. SPDR S&P 500 (SPY)

The SDPR S&P 500 is one of the largest and popular ETFs in the world. Launched in January 1993, the fund is sponsored by State Street Global Advisors, which gives us the reason why it is also one of the world’s most heavily-traded and best index funds. With thousands and billions of funds, SDPR S&P 500 has brought a paradigm shift in the investing world by kick-starting the wave of ETF investing. Have a look at some of its data!

  • Expense Ratio: 0.09%
  • P/E Ratio: 24.3
  • Shares Per Day: Above 93 Million
  • AUM: $278 Billion
  • Annual Dividend Yield: $5.68
  • 1-Year Return Rate: 11.445
  • 3-Year Return Rate: 38.09%
  • 5-Year Return Rate: 76.21%

3.     iShares Core S&P 500 (IVV)

Sponsored by one of the largest fund companies, BlackRock, the iShares Core S&P 500 ETF is a long-tenured index fund that was incepted in 2000. From Johnson & Johnson, Alphabet, to Berkshire and Hathaway, iShares Core S&P 500 index fund gives you a plethora of golden exposures to large and established U.S. companies. For investors who are looking to buy-and-hold the stocks, this ETF can prove extremely fruitful in the long run. iShares Core S&P 500 has:

  • Expense Ratio: 0.04%
  • P/E Ratio: 22.35
  • Shares Per Day: Above 87,561
  • Total AUM: $209 Billion
  • Annual Dividend Yield: $6.77 Per Share
  • 1-Year Return Rate: 11.62%
  • 3-Year Return Rate: 38.64%
  • 5-Year Return Rate: 76.30%

4. Fidelity ZERO Large Cap Index (FNILX)

In the competition for the lowest of the low-cost index funds, the Fidelity ZERO Large Cap Index undoubtedly wins the race. With a zero expense ratio, the Fidelity fund follows the Fidelity U.S. Large Cap Index and allows the investors to keep their invested cash intact for the long-term. Let’s have a look at some of its data:

  • Expense Ratio: 0%
  • Minimum Investment: No Bar
  • Turn Over: 3%
  • 52 Week Average Return: 22.24%
  • Yield: 1.20%

5. Schwab S&P 500 Index Fund (SWPPX)

Launched in 1997, the Schwab S&P 500 Index Fund is one of the cheapest and easily accessible S&P 500 tracking funds in the market. Sponsored by Charles Schwab and with thousands of billions of assets, Schwab funds are primarily famous for generating investor-friendly stocks. This mutual fund has:

  • Expense Ratio: 0.02%
  • Turn Over: 4%
  • Minimum Investment: $0
  • Yield: 1.81%
  • 52 Week Average Return: 19.65%
  • 1-Year Return: 19.65%
  • 2-Year Return: 13.63%
  • 3-Year Return: 16.62%

6. Invesco S&P 500 Equal Weight ETF

From Darden Restaurant, Twitter, to Lam Research Corp., Paycom Software, and FedEx, the Invesco S&P 500 Equal Weight ETF gives your portfolio multi-exposures to various companies in the U.S. Just have a look at the following data of the fund:

  • Expense Ratio: 0.20%
  • P/E Ratio: 18.94
  • Annual Dividend Yield: $2.12 Per Share
  • Total AUM: $13 Billion
  • Shares Per Day: Over 102,433
  • 1-Year Return Rate: 3.01%
  • 3-Year Return Rate: 23.29%
  • 5-Year Return Rate: 53.73%

7. Fidelity 500 Index Fund (FXAIX)

Formerly, ‘Institutional Premium Class Fund’, the Fidelity 500 Index Fund was founded in 1988. In the later years, Fidelity eliminated the minimum investment eligibility condition, so investors can easily get the low-cost index fund within budget. Some of its stats are:

  • Net Expense Ratio: 0.02%
  • TurnOver: 4%
  • Yield: 1.60%
  • 52 Week Average Return: 19.66%
  • Minimum Investment: $0
  • 1-Year Return: 19.66%
  • 3-Year Return: 13.65%
  • 5-Year Return: 16.67%

Closing words

Opting for the best S&P 500 index funds can let you leverage the benefits of diversification as well as mitigated risks. In general, the S&P 500 index fund with the lowest expense ratio is the best one. However, you should also consider various other factors, such as tracking error, assets under management, and past performances.

Sometimes the S&P 500 index funds could have sturdy holdings in the portfolio, but they might not be the right or the best choice for the investors. You can choose us as your investment consultant so that we can suggest the best investment based on your risk appetite. To learn more about the best S&P 500 Index Funds, visit https://wealthface.com/ today!

As the name suggests, an emergency fund is a necessary part of your earnings that you must keep aside to tackle emergencies. Technically, an emergency fund is a readily available source of liquid assets that can be cashed out while navigating through financial dilemmas, such as a debilitating illness, loss of a job, an expensive repair of home or car, or other unexpected circumstances such as a global pandemic. 

To put it in simple words, you can fall back on in need during a crisis or unplanned circumstances a fund.. As financial planners, we advise that your emergency fund should have enough finances to sustain you for three to six months at least. However, it may seem unrealistic to some. Therefore, we are here to answer some of the most popular questions about emergency funds.

Why is an emergency fund required?

The purpose is to ensure financial security during critical circumstances. Having an emergency fund is a necessity, which acts as a shock absorber for any financial bumps that one might come across. It must be planned in a way that it meets your unanticipated financial shortfalls and creates a financial buffer that keeps you afloat in the hour of need without having to rely on loans with excessively high-interest rates or credit cards. If you are already in debt, then it becomes crucial to have an emergency fund so that you can avoid borrowing more or at least clear your previous debts before taking any more loans. 

Why should the emergency fund be liquid?

The idea of these funds is to cover any unexpected expenses. Therefore, it should be ensured that these funds are parked in a liquid form. This is important because you should be able to withdraw the money when you need it without any delay. Check that you aren’t penalized in the form of an exit load or pre-withdrawal penalty, and the value of the amount invested should not go down either.

How much to save in your emergency fund?

The thumb rule of having an emergency fund is to have three to six months’ worth of your monthly income depending on your income and expenses. For example, if your monthly income is $3,000 out of which $500 are spent to meet the routine living and medical expenses, then ideally your emergency fund should be somewhere in the range of $5,000-7,000 at least. 

The amount of money required for your emergency fund should be carefully evaluated, for we live uncertain times with uncertain economies, especially with a global pandemic in full force. There is no job security, and corporate loyalty only exists in theory, which puts the multitude of us in a vulnerable position to unemployment. The emergency fund should be sufficient to sustain you for some time, at least in case of unemployment.

Your emergency fund can also be divided into two categories:

  •  Long-term emergency funds: Here, you save for large scale emergencies like a medical emergency or unemployment. Withdrawal of this fund should abstain unless necessary, and it should be invested somewhere that allows one to earn a slightly higher rate of interest but only take a few days to liquidate.
  • Short term emergency funds: It may offer low interest, but has immediate accessibility and can be liquidated at any instant, which can suffice till the time one gets access to long term emergency funds in case of extreme situations.

Where should you invest your emergency funds?

Emergencies can strike at any moment. Therefore, it is advisable to not have your entire emergency fund tied up in a long-term investment fund. Once a sufficient emergency fund is accumulated, it should not be left in the form of cash or a bank account, at least not entirely. It is wise to invest these to earn decent returns from it without compromising on the liquidity. 

Spread and invest the emergency fund across short term RDs, mutual funds, and other forms of liquid funds. Two good places to park your emergency fund are money market funds and high-interest savings accounts.

How to redeem your emergency fund?

It is quintessential to check for an instant redemption facility before investing in a liquid fund to ensure that the institution where you are investing your fund allows instant redemption of the amount. Almost all liquid funds allow instant redemption of up to 90% of the invested amount, as far as liquidity of the fund is concerned. The amount is instantly credited to your linked bank account. 

This way, you can enjoy quick accessibility and high returns on the amount.

Strategies to build an emergency fund

Emergency funds act as a comfortable cushion against unexpected circumstances in life and so it is essential to start early for setting it up.

Two relatively easy strategies to get started are:

  •  Set aside a comfortable chunk of your salary each month

Divert a portion of your monthly income to the emergency fund account. Calculate the necessary living expenses of at least three months and make that the target for your emergency fund. Once your savings reach the target, invest the extra savings for the long-term goals, and invest the entire amount to a liquid fund with high returns.

  • Save your tax refund

A major mistake that we all are guilty of committing is treating our tax refund as “extra” cash and giving in to the urge of using it for discretionary purchases. Instead of spending this tax refund, it is better to save it as a contribution towards your emergency fund to lessen the burden of setting aside a chunk of your monthly income to savings

Now that you know everything you need to, it is time to set up your emergency fund and be prepared for the uncertainties of tomorrow, especially in the wake of the Covid-19 pandemic.

Gone are those days when tech stocks were speculative picks. With the advancement of time and ground-breaking technological developments, the tech field has significantly widened its grip. When talking about top picks in the tech field, AMD and NVIDIA are popular among investors. Let’s find out more about them and whether they are suitable for you or not.  

In 2020, NVIDIA and Advanced Micro Devices or AMD stocks have delivered staggering performance and set the tech market on fire. Despite the immense economic hardships due to the COVID-19 pandemic, the stocks of both chipmakers stayed well-positioned. That is why various investors are looking for NVIDIA and AMD stocks to add to their portfolios. 

In this post, we will throw some light on why NVIDIA and AMD stocks are the top growth stocks to bring extensive positive results. But before we move further, let’s dive into the history of these giants!

Brief History of AMD

AMD was a semiconductor corporation in 2000. Most of the designs of AMD’s CPUs used to come from Intel, the company which eventually perceived AMD as a potential threat and later denied giving its designs to AMD. This compelled AMD to build their CPUs, which itself brought many challenges to the company because of the complexity and need for significant time. 

In 1996, AMD released its first original CPU named K5. By 1999, the company had acquired NexGen, which was a revolutionary change and which led to the production of the K7 chip. In 1998, the net sales of the company reached $2.5 billion and by 2000, it was at $4.6 billion. However, when Lisa Su, the former president and CEO of AMD entered the company, it was like a new birth. She followed a long-term approach and implemented highly effective strategies to mitigate debt. Her primary focus was on manufacturing computer gaming, designing effective processors, and increasing the compatibility of the cloud as well as data centers. The company today is one of the most successful CPU corporations in the world and is still creating milestones. 

Brief History of NVIDIA

Holding a strong idea that ‘one day PC would become a popular device for playing multimedia and games’, NVIDIA was founded in 1993. Three American computer scientists: Jensen Huang, Chris Malachowsky, and Curtis Priem founded NVIDIA. In 1997, NVIDIA launched the RIVA series of graphic processors that dominated the computer gaming industry. After two years, the company launched its one more phenomenal product, GeForce 256 GPU that offered superior quality of 3-dimensional graphics. In 2000, the company purchased the remaining assets of 3dfx Interactive. The year 2000 also marks a stepping stone for the company as Microsoft Corporation chose to develop graphic cards for the Xbox video game console. To honor the significant growth and success of NVIDIA, Forbes titled the company as “Company of the Year” in 2007. 

Therefore, we can say that by carrying out a plethora of architectural updates as well as manufacturing improvements, both the companies continued to iterate successfully for the later years. 

The Rise of Stock Prices

A few years ago, AMD was on the verge of bankruptcy with a net loss of $7 billion. By 2015, the company’s share price fell dramatically to below $2 per share. However, if we look at today’s statistics, the AMD stock price has reached over $90, which means that the price has been increased by 5000% within a fraction of 5 years. Today, AMD possesses a large market share in the world.

Similarly, a significant rise has also been seen in Nvidia’s stock price from $192 in 2017 to $235 in 2019. This was primarily due to the 12% growth in revenue and a 1.36x expansion in the PE. In 2020, the company started trading at below $240 per share and the level significantly dropped to $196 per share in March. However, in early September, the stock reached a ground-breaking record of $589 per share. 

Why Are NVIDIA & AMD Stocks Top Growth Stocks?

Although there are myriad reasons why the stocks of these two chipmakers are a great pick right now, the five major reasons are:

 

  • Quality Growth Drivers

 

In the last quarter, NVIDIA’s video gaming business computed for 48% of its revenue and the sales showed an increase of 37% year over year. Similarly, AMD stocks (of computing and graphic segments) accounted for approximately 60% of the total revenue, thus showing an impressive increase of 31% in quarter 3. 

If we talk about the current conditions of both companies, they have immense potential to sustain momentum. Due to the recent launches of new gaming consoles from Sony and Microsoft, AMD’s semi-custom revenue has significantly risen. Besides, AMD is dominating the market share in the field of CPU as compared to Intel. On the other hand, NVIDIA is showing significant growth in its data center business every quarter. Due to the rising demand for artificial intelligence applications and other high-level computing operations, NVIDIA’s data center business has a great scope for growth and development. 

  • Growth Of Earnings

 

Investors always prioritize double the earnings so that they can hike the profit levels. In this regard, just look at the historical EPS growth rates for both the companies:

  • AMD: 80.2%
  • NVIDIA: 34.2%

This year, AMD and NVIDIA’s EPS is estimated to grow by 72.5% and 67.8% respectively, thus beating the industry average.  

  • Growth In Cash Flow

 

Cash flow is calculated by deducting capital expenditure from operating cash flow. It is a measure of financial performance that serves as a lifeline for any business. Higher cash flow allows the company to carry out the growth-oriented expansion of its business. If we look at the cash flow of both the giants we’ll find it in a state of growth. 

In 2020, the annual cash flow of NVIDIA was $4.272 billion, which is 35.92% more than that of 2019. In 2019, it was $3.143 billion, which was 7.97% more than that of 2018. In 2018, it was $2.911 billion, which was 93.68% more than that of 2017. 

Similarly, for AMD stocks, the cash flow right now is 44.8%, which is quite higher than its rivals. However, the performance in the past is not so satisfactory. Let’s have a look at the past cash flows of the company:

  • 2019: $0.276 billion (decreased by 313.95% form 2018)
  • 2018: $-0.129 billion (increased by 27.72% form 2017)
  • 2017: $-0.101 billion (decreased by 2625% form 2016)

Although NVIDIA showed consistent growth in cash flow over the past 3-5 years, AMD stock performance was not up to the mark. 

Therefore, choosing NVIDIA stocks while considering the cash flow growth would not be wrong.

  • Asset Utilization Ratio

 

The Asset Utilization Ratio reflects how well the company is using its assets to generate quality sales. In the third quarter of 2020, the asset utilization ratio of AMD increased to 1.36. NVIDIA has an asset utilization ratio of 0.64 right now. If we will compare this ratio to the industry average of 0.62, we can say that both companies are highly efficient.

  • Trends In Earnings Estimate Revisions

 

In order to measure the superiority of a particular stock, an investor should also look at the trends in earnings estimate revisions. AMD’s earnings estimate has risen to 0.1% over the past few months. Similarly, NVIDIA’s earnings estimate has been rising upwards. For the current year, the figure has surged 1% over the past few months. 

Such positive trends in Earnings Estimate Revisions reflect the significant stock price movements in the future. 

The Bottom Line

Both NVIDIA and AMD stocks could bring you higher returns. With multiple tails extending their businesses, both the companies could reach higher in terms of share prices. The increasing tech demands and evolving tech industry makes both of these stocks worth holding to breakneck the growth. 

But when it comes to making the right investment, you cannot overlook the importance of professional assistance!  This is where Wealthface comes in! With a dexterous crew of financial advisors, we may help consumers to build their investment portfolio without breaking their bank while eliminating potential risks. So, contact us right away! 

Women may often have a tougher time than men when it comes to money. It’s not because women are bigger spenders than men, or because they don’t want to build wealth and invest. In reality, in contrast to their male counterparts, there are significant systemic barriers to women achieving financial independence. There is gender price discrimination, known as a “pink tax” (meaning women pay more for “female” product versions than men do for similar products), wage bias, job bias, investment bias (where men are perceived as better investors than women) and wealth-building bias (the belief that because women earn less and spend less, they often accumulate less wealth over their lives). There are a lot of obstacles that women can face to get ahead financially. Read on and learn more about how women can improve their investment for the long term. 

What are the tips that Women Should Consider to Have Stable Financial Planning?

Many women make financial mistakes that prevent them from having a stable financial future. Do you consider yourself one of them? Here at Wealthface, we will share 5 tips on how you can have stable financial planning: 

  1. Long-term plan: 80 % of men die married, and 80 % of women die single. Your financial plan needs to include expectations about your medical and personal care needs. Most people plan their retirement for long term care so that they won’t be a burden on their children.
  2. Saving Plan: You heard it before: first pay for yourself. Once you’ve met all of your financial obligations, see what’s left for savings. Resolve to set aside a minimum of 5% of your savings salary. Better yet, have your money automatically deducted from your paycheck and deposited into a separate account.
  3. Stick to a Budget: Budgeting is a crucial step to consider when trying to get ahead financially. After all, how do you know where your money is going if you don’t have a budget? How can you set targets for spending and saving if you don’t know where your money is going? You have to set up a budget, whether you make thousands or hundreds of thousands of dollars a year.
  4. Cut down expenses: Unnecessary expenditure can often lead to disappointing profits. They can come in many forms: valuable office space, inefficient advertising, frivolous small purchases, non-moving inventory, etc. Schedule some time to examine where you spend your money carefully, and then look for places to cut back.
  5. Invest with confidence: Don’t let the fear go of your investment strategy. Money is security for women, and they tend to fear to put any of it at risk. Women are more risk-averse than men and are more likely to dwell on potential losses than potential gains when investing.

What Are the Financial Tips That Single Moms Should Consider While Planning their Financial Plan?

We’ve heard it said many times that if you want to do a good job, find the most active woman in the room and ask her. And the incredible woman is typically just one mother. So, it’s time for us to concentrate on what we can do to give these wonderful women the support they deserve by sharing 5 key financial tips for single mothers.

  1. Control your finances… don’t let them get you: Although the percentage of single women who are heads of their household is high, in a two-income household environment, it is still difficult to manage as a single mum. There is no safety net, and you are solely responsible for you, so you have to set boundaries and live within the budget. You might feel the pressure to join in the fun of a girl’s night out, but it might be extravagant that it isn’t necessarily affordable for a single mother. You don’t need to isolate yourself, but you need to be honest when you can’t afford something.
  2. Needs vs. wants… the old battle we all face: We’re not going to coat sugar: you need to develop and adopt a budget! The willingness to become honest and honest about spending will go a long way toward navigating the financial waters safely, being your version of a financial life raft.

Check your spending every month and make adjustments as needed if anything is out of control. For example, if you pay too much on one category, such as eating out, cut back on another, like clothing, until you get back on track.

  1. Create a support system: Whether they’re family or close friends, let them know what you’d find essential to navigate your finances and time management resources (which are often intertwined) as a single mom.

Since babysitting is expensive, you might want to set up a babysitting co-op or ask your trusted friends and family for a hand. Set up a clothing exchange and extend it to children’s friendly furniture, youth sports facilities, and beyond.

  1. Consider Investing: Keep your children up to date with your financial circumstances, and then model consistent and good fiscal behavior. Not only will you keep your family financially focused on what’s most essential and what’s real and affordable, but you’ll also raise fiscally literate children with awesome skills and knowledge that they can tap into in their adult lives.

However, don’t forget the fact that you would need to be able to rely on your net worth to retire without being a burden on your children and others.

Start small when you get started first, and then boost what you collect monthly. As your assets improve and your children become self-employed, use new-found cash flow to increase your investment contributions, and build your net worth.

  1. Pay down debt, and set up an emergency fund: You can eventually find yourself in debt owing to medical costs, work loss, or other circumstances that are entirely understandable. Focus on paying off unwelcome debt as soon as you can, and building emergency savings to help reduce potential debt needs.

Debt buying an affordable car to get to work is not a bad debt, as long as you have the earnings to handle that overhead. A proper mortgage can also serve as an example of good debt.

And while it could be convenient to use your credit card points and rebates, charge what you can afford to pay each month fully when those bills are due. Don’t be enticed to cost more than just for bonus points and bonuses in your spending program.

Finally, to have a stable future, you should prioritize, plan, and proceed. Most importantly, plan and figure out the resources you have and the ones you need to acquire and know that you are not alone! Open an account with Wealthface and get your free financial planning review with our financial experts. 

In the current economic environment, it is easy to feel frustrated by personal debt and money problems that have arisen over time. While it may seem to handle too much, there is a light at the end of the tunnel. By following various recommendations, you accomplish your financial objectives and become aware of your monthly and annual finances. You can reduce debt, so in your rearview mirror, you can wave them away. Read on and discover the tips to help you meet your financial goals. 

7 Financial Tips to Meet Your Goals

A good target will keep you going, but one that’s too hard, ambiguous, or unrealistic is typically forgotten. When it comes to finances, goal-setting helps us step in the right direction, but you need to start right by choosing goals that work for you.

Here are 7 financial targets to help the finances step towards potential success.

1- Create a budget

The financial aim that will help you achieve success in all of your objectives is to build a budget. This easy move gives you a bird’s eye view of your finances to have a good understanding of how your money flows and where you can change the flow to achieve those goals.

It all begins with a detailed preparation process. Next, you have to plan your financial targets, collect your different sources of revenue, and pool all your expenses — even the $1-per-month app fee you’ve overlooked for the past year.

One thing to remember is that the budget is not a set-it-and-forget thing. It’s a living document that you’re going to have to update at least once a month to make changes as needed.

2-Get organized

Organizing is a significant step toward a financially stable lifestyle. It needs you to control your financial records, as well as your time.

Allow financial preparation as part of your daily routine. Much when you plan time to go to a grocery store or a gym, you can also schedule a time to maintain a balanced financial life. Devote time every week to thinking, communicating, and learning about money management. Commit 30 to 60 minutes of financial preparation each week and speak to your spouse or partner about forming a strategy together.

3- Know where your money goes

You can take control of your financial condition, but you need to know where your money is going. Start by putting everything you thought you spent the money on last month. First, search the most recent bank and credit card statements to see what you have earned. 

 Make sure to take note of everything you bought and how much it cost you. Include leasing, car insurance, food, small transactions such as coffee or snacks, and bank or credit card fees.

When you know precisely how you spend your money every month, you’ll also find places where small sums of money tend to vanish. They’re called money leaks. Examples of money leaks include purchasing costly coffee drinks every day, having lunch, and making impulse purchases. Although it might not sound like you spend a lot of time, these leaks may add up to a lot of money over a month or a year.

4-Shop Smarter

Plugging money leaks frees up cash so you can concentrate on making your dreams a reality. Another way to “collect” money without necessarily making more money is to make better spending choices. See how many of these buying tips you can add to your next month’s spending:

  • Evitate impulse purchases by making a list for every shopping trip and sticking to it.
  • Just take cash on shopping trips and don’t spend more than you have.
  • Buy generic store brands in supermarkets where possible and where the consistency of the items is appropriate.
  • Compare your costs. Check for sales and off-season offers.
  • Compare the use of coupons. Be patient, however. Even a big-name item is even more costly with a discount than a supermarket brand.
  • Buy a lot of things you also use. Try buying these things for sale and stock up. Be careful not to buy more than you can use.

5-Create a spending plan

Putting your financial targets in writing will make them more concrete and workable. However, it is easy for everyday expenses and commitments to get in the way of planning for the future. One of the easiest ways to make sure your everyday spending patterns don’t overshadow your life’s goals is to create a spending plan. The expenditure plan is not meant to be a strict budget. Instead, it’s a guide that will help you take charge of your financial future and eventually achieve your goals.

6-Save for your future

Saving money isn’t an easy task, but it is essential to achieve financial well-being and secure your future. One of the safest and simplest ways to save money and launch a good retirement income planning program is to pay for yourself first. Each time you get a paycheck, save a certain amount of your salary before spending money on something else. You can opt to have your bank automatically move a certain amount of money from your account to your savings monthly. That way, money never enters your wallet, so you’re not going to lose it.

You can also make money simpler by allowing investments and incentives rather than investing them immediately.

7- Start investing money to reach your goal

When you’ve established your financial goals, and laid out a spending schedule, you know what you’re saving for and how much you’re going to need to get there. For longer-term goals, saving is one of the best ways to keep your capital increasing. When you spend, you set aside funds for long-term goals such as retirement or child education. The best way to do this by immediately deducting money from your savings account or paycheck and putting it in your choosing investment fund.

Finally, the strategy will help you make big financial choices at any point in your life. It will inspire you to fulfill your dreams. You may want to consult a Wealthface financial advisor when you are ready to begin investing.

As Buffett wrote in a 2016 letter to shareholders, “When trillions of dollars are managed by Wall Streeters charging high fees, it will usually be the managers who reap outsized profits, not the clients. Both large and small investors should stick with low-cost index funds.”

Index funds refer to funds that invest in a broader market indexes. People are less aware of this kind of funding and prefer to invest in actively managed funds. There has been a change in the investing pattern, which is now focusing more on the passively managed funds.

If you are planning to invest, you have to know the following information about the Index funds.

What is an index fund?

An index fund is a portfolio of stocks or bonds designed to form the composition and performance of a financial market index. Index funds have lower expenses than actively managed funds. When you buy an index fund, you get a various selection of securities in one easy, low-cost investment.

In layman’s language, an index fund is like a box of chocolates, consisting of different types of chocolates available, so that you get to taste the best of each type.

Index funds follow a passive investment strategy. These funds are also known as index-tied or index-tracked mutual funds. For instance, you might put 60% of your money in stock index funds and 40% in bond index funds.

How does it work?

The index funds consist of a bundle of stocks of different companies. For example, the S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises 500+ common stocks issued by 500 large-cap companies and is traded on American stock exchange. The fund manager decides which stocks have to be bought and sold. It is made sure that it invests in all the securities.

However, there can be a small difference between fund performance and the index, also called the tracking error. It is the job of the fund manager to bring down the tracking error as much as possible.

Who can Invest in Index funds?

Index funds involve low-risk. In many cases, index funds outperform even the most actively managed mutual funds. Therefore, the risk-takers who expect profitable and significant returns are ideal for investing in index funds. These funds do not require much tracing, making it easy to manage. However, if you want to earn significant returns in the short run, then one must actively manage the funds.

Factors to consider before Index Funding:

Investing may seem arduous to some, but if done right, you can earn the best value for your hard-earned money. Make sure to consider these factors before investing in Index Funds.

  • Investment plans- These funds experience fluctuations in the short-term, which averages out in the long-term. You need to stick around in the long-term if you wish to invest in index funds. A period of 7 years or more is usually recommended.
  • Risk Factors- Even though risks are lower in index funds, one must maintain a healthy mix of index funds and actively managed equity funds in the equity portfolio. This is because index funds lose their value during market slumps.
  • Expense Ratio- Index funds have low expense ratio. As the funds are passively managed, there is no need for an investment strategy. This brings the expenses down.
  • Tax- On the redemption of your units, you earn taxable capital gains. The rate of taxation depends on the holding period.

Benefits of Index Funding:

  • Remunerative returns- Index funds have low investment costs and high rate of returns.
  • Lower managerial cost due to passive management- There is the minimal cost required to start your investment journey with index funds. This makes it suitable for all classes of investors.
  • Broader diversification- It reduces the degree of risks associated with the investment.

The Drawbacks of the index funds

Moving forward, index funds do have a few drawbacks that every investor needs to keep in mind.

For as much as index funds are not actively managed, and most indices are market-weighted, sometimes a well-performing stock gets higher weightage in the index. Hence, index funds enjoy less flexibility than managed funds. Index funds investment decisions are made within the constraints of matching index returns.

How to Invest in Index Funds to get the maximum returns?

Before investing in Index Funds, one must analyze the past performance of the funds, as it gives a better prediction of the future. Secondly, compare the expense ratio to the return on investment, and invest in the most profitable option for you. If you are willing to invest in Index funds, the choice of specialized brokerage firms matters the most.

Begin your investment journey with Weathface.

Wealthface is a reliable digital platform for investment. It follows the well-known back-tested algorithms which provide gripping and profitable schemes for investment, helping you grow your wealth in the long term.

The plan of action is easy, transparent, and has only three steps. The key features delivered are:

  1. commission-free trading,
  2. expert advice from the in-house experts having credentials from the world’s most prestigious institutions,
  3. a complimentary service of auto rebalancing of accounts, and
  4. buying of fractional shares and so on

Wealthface offers different pricing categories with their exclusive benefits. Start your investment journey with us today!

In a nutshell

Index funds are more stable in comparison to other equity funds. They give high returns at low risks. Before investing in index funds, study the track records of the funds, compare them and choose the one that gives the most worth for your hard-earned income.

Amazon is one of the most popular and profitable e-commerce companies in the world. Amazon stocks are also popular among investors due to their high ROI. But should you invest in amazon stock right now or not, that is the question to consider. We’ll address that in this post. So, settle down and read on!

When we talk about e-commerce companies in the world, Amazon stands tall in terms of revenues. Proudly holding the title of “World’s Largest Online Retailer”, Amazon now generates revenue over $61 billion. It holds multiple business units that raise its profit margins and accelerate revenue growth. 

When it comes to generating massive investor health, Amazon stocks have been proved as the most successful with a return of around 2,450% in the last ten years. However looking at current market conditions, a question that is still lingering in the minds of various investors is – Should I buy Amazon stock right now? Before we move further, let’s find out how Amazon started and how it became a player. 

Brief History of Amazon

The year was 1994 when Jeff Bezos (innovative founder of Amazon) recognized the magnitude of the internet revolution. He then decided to quit his job and start his own internet-based commerce company. Out of the list of top 20 products to sell online, he decided to start with the ‘books’ because of their universal demands and lower costs. So, he started Amazon as an online bookstore, which later forayed into different categories. 

Bezos knew very well that the only way to succeed in online business is to grow bigger and faster. With years of exhaustible efforts and extensive expertise, the company is now creating exceptional limestone every year. Today, the company sells everything from books to electronics, furniture, garments, and much more. 

The Rise of Amazon Stocks & Prices

Who would have predicted back then that an online book store would become one of the most dominant e-commerce platforms in the world? Who would have known that one day Amazon will offer everything from books to high-end fashion items? If you would have invested $10,000 at Amazon in 1997, you would have garnered around $4.9 million of returns today. 

From $18 in 1997 to approximately $948 in the later years, there has been a 5,166% increase in Amazon stock price. If we talk about 2020, Amazon generated $96.1 billion in net sales during the third quarter, which is 37% more as compared to $70 billion in the same quarter in 2019. In the last 20 years, the return from Amazon stocks is standing at 8,400%. That’s all about the past, the company’s ROI in the future is the fact to discuss. 

So, let’s have a look at some other aspects to figure out whether or not the company remains a strong bet for 2020 and forthcoming years.

 

Important Aspects To Consider Before Buying Amazon Stocks

If you wish to invest in Amazon stock, then do consider these aspects. 

 

  • High Resistance To COVID-19

 

Although various other online businesses were terribly shaken due to the COVID-19 pandemic, Amazon stocks generated higher returns of up to 75% in 2020, thus demonstrating a strong resistance to COVID-19. With all the markets and industries shutting down, various people faced an uphill battle in their businesses. However, Amazon remained well-positioned and stubborn in terms of online sales and generating revenues. 

Owing to the COVID-19 pandemic, people dramatically shifted to online platforms for purchasing items and essentials. It accelerated online sales in a significant manner. In the first 6 months of 2020, Amazon sales reached 33.5%, i.e., at $164.36 billion. During the second quarter, the company also increased the capacity of grocery delivery by 160% and almost tripled the sales of online groceries during the pandemic. Moreover, online global sales are expected to reach $6.54 trillion in 2023. Hence, Amazon will leave no stone unturned to grow its business at a faster pace. 

 

  • Largest Global Cloud

 

Although the largest business option for Amazon is e-Commerce, it also receives profound profits from Amazon Web Services (AWS). From the global sales of storage, compute, database to providing services for start-ups, academic institutions, and government agencies, Amazon derives significant revenues. 

In the 2nd quarter of 2020, the sales from AWS jumped to 29%, that is, $11.6 billion. It accounted for 12.2% of the total sales generated. According to the Synergy Research Group, Amazon Web Services constitutes 33% of the global cloud infrastructure. The total global cloud infrastructure sale by Amazon for the past 12 months is $111 billion. Similar to e-commerce, Amazon’s cloud business has also remained resistant to COVID-19. 

 

  • New Markets & Business Growth

 

Amazon has been continuously expanding its market and growing its business in a significant way. In 2017, the company paid $13.4 billion to purchase Whole Foods Market. It then gradually moved to food and groceries delivery. Amazon has various other businesses that have a good scope for growth and development. Back in 2014, it acquired Twitch for $1 billion, which is now the world’s largest game streaming platform. 

 

Furthermore, Amazon continues to make heavy investments in transportation, video content, and online streaming to compete against Netflix and other brands. When all the entertainment spots were shut down due to COVID-19, people heavily relied on online content to keep themselves occupied and happy. Amazon Prime Video continued to provide a plethora of benefits to the company.

Besides, Amazon has now become the third-largest digital advertising platform in the world. Therefore, the company is continuing to provide ad services to various sellers and publishers and is receiving enormous profits. In the second quarter, Amazon ad sales reached 41%, i.e., $4.2 billion (according to Ad News Report).

 

  • Outstripping Forecasts

 

In the second quarter, the estimated revenue forecast for Amazon was $81.53 billion. However, Amazon has beaten up the forecast when it reported sales of $88.9 billion. What was more surprising for many investors was the fact that the company’s adjusted earnings were 600% higher than the estimations made by the analysts. On Oct 29, the adjusted earnings per share were reported to be $12.37, which was much higher than the estimated $7.48. 

 

  • Robust Strategy

 

A cursory glance at the history of Amazon shows that the company has been using a robust marketing strategy by focusing on the top-line growth and sacrificing profit margins for extensive positive results. It is this strategy that has made Amazon attain the topmost position in the business world. 

 

  • Expectations To Increase Earnings

 

Various analysts have estimated that the company will increase its earnings at a rate of 36% per year for the next five years. Quite impressive, right?

What are the Possible Risks of Buying Amazon Stocks Now?

Let’s now have a look at some possible risks that might decrease the value of amazon stocks. 

  • Due to the increasing e-Commerce competition, Amazon stocks may grow slower than expected.
  • Although Amazon is the largest online retailer, it is still facing high competition in direct-to-consumer online sales. 
  • According to Bailey, additional risks might include the diminishing enthusiasm for FAANG (Facebook, Apple, Amazon, Netflix, and Alphabet) stock. It will become really hard for Amazon to keep the enthusiasm intact once it will start declining.
  • Sustaining the rates of growth to justify the price-earnings ratio is itself a challenging task in the highly competitive market. 

Should You Buy The Amazon Stocks?

Now, we come back to the question in purview. If we compare the risks with the company’s potential, there are fewer reasons to not buy Amazon stocks

After digging into the company’s net incomes, earnings, revenue generations, management system, diversified business model, marketing strategies, and suitability, one can easily detect that Amazon has great growth potential for the future years. This simply means Amazon is a great buy today!

Looking to buy Amazon Stocks but don’t know how to buy them? Do you want to know more about it? If so, look no further than Wealthface!! We’ll provide complete financial assistance.  

Financial independence is paramount for every woman. It means to have health, power and freedom along with adding confidence and self-worth to your personality. It’s not the money you should be after, rather the freedom to live life on your terms.

Conventionally speaking, making a financial decision is considered to be a man’s domain, and a woman has less role to play in it. However, this generation has turned the tables. A confident woman doesn’t depend on a man. With the increase in the cost of living, it has become equally important for a woman to learn the skill of making effective financial decisions for oneself and the family as well. 

Statistically speaking, 90% of women will be financially independent at some point in their life. Thus, it has become inevitable for a woman in this current world to be equally good or better in the world of finance. 

Besides, being a financially independent woman helps one to be more confident and build higher self-esteem and morals.

Acknowledging the fact that a woman is as capable as a man, the following points will help you become wealthy and financially independent.

Acquire continuous knowledge

If you want to excel at managing your finances, educate yourself. The field of finance is enormous, and for that, one needs to have strong decision-making abilities. To master the game, try to acquire thorough and continuous knowledge about it, for instance, reading articles, newspaper, conversing with seniors in the industry and having a mentor. The more you learn, the better you get.   

The flow of income

Primarily, having a legit flow of income is necessary, irrespective of the quantum. The flow of income gives one a sense of responsibility and confidence in themselves. It helps a person to dream bigger and better. One should endeavour to level up the flow of income gradually.

Budget Setting

Maintaining a budget is the first step of making a financial decision, keeping in mind the cost and expenses and the source of income. It will help you in having a clear sense of your expenses and income. Segregating the income earned into several heads of payments, and allotting it keeping in mind that there is some surplus amount left at the end. Try to make daily, weekly, monthly or annual budgets. 

Saving up and Investing for the future

Learning the art of thrift is very important. To start with, one should open up a savings bank account in a local bank and start depositing the surplus income. Adapting to the habit of saving is another step of learning how to make a financial decision for oneself. It will help you in the future dire situations and emergency cases. On the other hand, investing is equally vital because it helps in gaining wealth. Nobody becomes rich by keeping the money in the bank. Investing in assets like stock, land and building, gold etc. is a good choice for the long term.

Wealthface is a reliable digital platform for investment, following the well-known back-tested algorithm which provides gripping and profitable schemes for investment and helps you grow your wealth in the long term. 

The plan of action is easy, transparent, and has only three steps. The key features delivered are:

1) commission-free trading, 

2) expert advice from the in-house experts having credentials from the world’s most prestigious institutions,

3)  a complimentary service of auto rebalancing of accounts, and

4)  buying of fractional shares and so on

Wealthface offers different pricing categories with their exclusive benefits. Start your investment journey with us today!

Insuring of life

Proper insurance coverage is a necessity in the world of inflation. To be a financially independent woman, one must have their life insurance done. It is a vital step towards mastering the game of decision making in the field of finance. It acts as a security in future needs.

Proper guidance and advice from a financial planner

Before taking any step or making any decision, it is foremost to take proper guidance and advice from a financial planner. The financial planner will help you to invest and save up smartly. 

Be debt free

Having debt is a sign of bad planning and decision making. It acts like an anchor which will stop you from being financially independent. To keep your debt in check, one must clear it as soon as possible, no matter how much it crunches the savings. It is because getting out of piling debt is as burdensome as finding a needle in a stack of hay.

Take a risk and learn from mistakes

“Set goals, crush goals, repeat.” Women are usually very cautious when it comes to making an expense. But the real deal is in loving your dreams and taking risks. Irrefutably, a person needs to leap a faith and take a risk like investing in an asset or making some changes in the budget. Moreover, it is good to learn from the mistakes we make. There may be times when our expenses exceed our income, and we use up our previous savings. So, this will require us to cut down our cost of consumption like impulse buying or eating out, fancy shopping etc.

Keeping an eye on your hobbies

Find three hobbies- One to make money, one to keep you in shape and one to keep you creative. According to a study, 40%-45% of people tend to transform their hobby into their passion and earn for their living. One should pursue what they love. Not only are you going to love your job but also sustain your life. With proper planning, direction and most importantly will, one can turn their hobby into their mode of earning. It’s not a piece of cake but worth a try.

Having a proper future goal

Last but not the least having one self-actualization goal in life helps a lot in shaping our path of life. Be it travelling the world, buying a home or settling down with a family. The ultimate goal will drive you through all the ups and downs. Big dreams take time to manifest, so stay patient. 

Even though depending on a wealthy man can raise your standards, earning yourself raises your self-worth. 

Tesla stock is among the popular names in the market because of the company’s impressive potential that promises high ROI. The stocks have skyrocketed in the last few years with the increasing revenues of the company. However, is it worthy to invest in Tesla stock? You’ll find it out in this post. 

2020 has been a year full of struggle for almost all industries and economies. While a majority of companies were facing an uphill battle to survive, Tesla was busy creating milestones. In 2019, Elon Musk estimated the company’s market value to be $500 billion. However, if we see the current market value, it is $594 billion, thus outstripping even Musk’s strongest estimate. Such a staggering performance has left many market watchers speechless. 

As 2020 is winding down, many investors are wondering what is next for Tesla stock. If you are also on the same page, then you are in the right place. In this post, we will take a look at all the factors that can determine whether or not you should buy Tesla stock in 2021. But before we move further, have you ever wondered how Tesla started and electrified the automotive industry? Let’s find out!

Brief History of Tesla 

Originally called “Tesla Motors”, the company’s name was given after the 19th-century inventor Nikola Tesla, who is prominently famous for discovering the characteristics of the electromagnetic field. The company was founded in 2003 by two engineers named Martin Eberhard and Marc Tarpenning. In 2017, the company’s name was changed to simply ‘Tesla (TSLA)’. Between 2004 and 2008, the company continuously grew and developed its first automobile named “The Roadster”. 

In order to survive in the changing times, Tesla also tried to launch products that could aim to capture a wide range of target audiences. The company even expanded its footprints in California, Lathrop, and the Netherlands to thrive in the competitive market. When Tesla released its ‘Model S’ flagship car in 2013, it dramatically captured the attention of the media. This release has been a huge hit and the company continued to dominate in the electric car market for the later years. At present, the company is raking in a lot of revenues. 

Therefore, it would be wrong to say that Tesla was an overnight success. With years of exhaustible efforts and robust marketing strategies, the company attained a pioneering position in the automotive industry. 

The Factors You Should Consider Before Buying Tesla Stock

 

  • Performance In 2020

 

At the beginning of the year, Tesla stock started trading at around $430 per share and it fell down to $361 in March due to the COVID-19 pandemic. However, the company gained strong upside momentum and the stocks reached $427.64 within a small fraction of time. 

On July 13, the company’s share price reached $1,795, which was 300% more than from the starting of 2020 (as per Tesla stock analysis). The price then went down to $1,500 and then quickly rose due to the stellar performance in quarter 2. On July 23, Tesla stock started trading at $1,678.95 per share and the company’s market cap was almost $300 billion at this time. 

Let’s take a look at some of the figures for the rest of the months:

  • Early September: $330 per share.
  • December 7: The market value of $608 billion. 
  • December 10: $625 per share + market cap of more than $594 billion.

An overall look at the performance of 2020 shows that Tesla has remained well-positioned in the share market.

 

  • Developmental Forecasts

 

Wall Street predicted the company’s revenue to be around $8.2 billion and $0.55 of earnings per share. However, the revenue of $8.77 billion and earnings of $0.76 per share were reported by the company, thus out beating the analyst’s expectations. In the third quarter, the company also generated a free cash flow of $1.395 billion. 

Moreover, it was announced in November that Tesla stocks would accept S&P 500 by accounting for 1.69% of it. This acceptance of the S&P 500 was expected to raise the funding trades in Tesla stock, which it significantly did. 

Elon Musk is on a mission to massively expand manufacturing by building 20 million electric vehicles per year over the next decade. The company has already started the construction of its third manufacturing plant, which is expected to be completed by March 2021. The Model Y will be produced in this plant. Musk has also confirmed the location of the fourth manufacturing plant, which will produce Cybertruck, Semi, Model Y, and Model 3. It is quite impressive for investors, right?

 

  • Confident Growth

 

The list of competitors of Tesla is growing. Mercedes Benz division of Daimler AG, Volkswagen Group, BMW – these three car companies will provide a tough competition to Tesla when it will start releasing its cars in Germany. In China, Xpeng Motors, Nio, and Li auto will be the rivals. Other tough competitors are Tata Motors, Audi eTron, and the Jaguar unit. 

However, despite this increasing competition, Elon Musk is quite confident about the company’s growth. He said in September, “About three years from now, we’re confident we can make a very compelling $25,000 electric vehicle that’s also fully autonomous.” 

 

  • Composite Rating

 

According to the IBD Stock Checkup tool, Tesla stock possesses high composite ratings. Let’s have a look at them:

  • Relative Strength Rating = 99 (means the price movement of Tesla stock is relatively stronger than others)
  • Accumulation/Distribution Rating = A- (means more funds are buying than selling)
  • IBD Composite Rating = 99 out of 99 (means Tesla stock is presently outperforming 99% of all the stocks)

 

  • Stock Predictions

 

Dan Ives (analyst at Wedbush Securities) has already raised his price target for Tesla stock from $450 to $560. Ives in a research note said, “Overall, we are seeing a major inflection of EV demand globally with our expectations that EV vehicles ramp from 3 percent of total auto sales today to 10 percent by 2025.”

However, his optimistic prediction regarding Tesla can be best sensed when he added that the company is more likely to achieve its mission of 1 million deliveries by 2023. 

Wall Street analysts predicted that Tesla stock will trade in the range of $640 to $960 at the beginning of 2021. Pierre Ferragu, the New Street Research analyst estimated that the company will sell around 2 to 3 million cars every year after 2025. 

After diving deep into the technical analysis of the company’s past, present, and future, we can predict that its stock would be trading at $620.85 per share at the starting of 2021. By the end of the year, it will probably reach $745, 77 per share. In 2023, the stock could be at $992.87 per share and by the end of 2023, it may reach $1255.53 per share. 

Should You Buy Tesla Stock or Not

There is no doubt in the fact that Tesla stock is greatly attracting a plethora of investors. The rapidly growing valuation of the company might be considered as a risk factor, but the investors who took a risk back then are actually enjoying immense profits now. The past performance of the company cannot guarantee its future performance. You need to understand that the market is highly unpredictable these days. 

Therefore, while taking this crucial investment decision, you should do intensive research by carrying out the latest technical analysis, considering expert opinions, and monitoring the changing market trends. This is where the importance of professional assistance comes into play! 

Wealthface is a leading destination that has a dexterous crew of financial advisors and market experts who may carry out research and let you buy Tesla stock in 2021 with the anticipation of higher returns.

This is extremely important to make profitable investment commitments. Consider the expert advice and the pivotal decision to ‘buy or not to buy’ still remains with you! 

Diversification can be achieved by combining assets that move in the opposite direction, which means those assets react to the same economic event differently. A typical diversified portfolio has stocks, fixed income, and commodities mixed. Read on to discover what is a diversified portfolio and how it works. 

What is a Diversified Portfolio?

The assets don’t correlate with each other within a diversified portfolio. When one’s value rises, the other’s value falls. It lowers overall risk because it will benefit some asset classes, no matter what the economy does. It compensates for losses on other assets. Risk is reduced since it is rare that any single event would wipe out the entire portfolio. A diversified portfolio is your best defense against a financial crisis.

How Does Diversification Work?

Stocks are doing well as the economy grows. Investors want maximum returns, so they bid up stock prices. Because they are optimistic about the future, they are willing to accept a greater risk of a downturn.

Bonds and other securities with a fixed income do well when the economy slows. Investors are more interested in taking a downturn to protect their holdings. They’re prepared to accept lower returns for that risk reduction.

Commodities are playing a very important role within your portfolio. Traditionally, the price of precious metals such as gold rises in times of crisis. Prices of commodities such as wheat or oil fluctuate with supply and demand. For example, if there is a drought that limits the supply, wheat prices would rise. Oil prices would fall if supplementary supply existed. As a result, commodities do not as closely follow the phases of the business cycle as stocks and bonds.

What is the Purpose of Portfolio Diversification?

The main goal of portfolio diversification is to minimize the risk to your investments, particularly unsystematic risk.

Unsystematic risk — is a risk related to a particular company or market segment. It is the risk that you hope to reduce by diversifying your portfolio. In this way, not all your investments would be uniformly affected by market events in the same way.

How Do You Diversify Your Portfolio?

Diversification of portfolios is key to investment and is crucial for better risk management. Diversification has many benefits. However, this must be done with caution. Here’s how you can diversify your portfolio effectively:

1- Spread Out Your Investments: The attractiveness of investing in equities lies in their higher return, making them a powerful tool to grow wealth, but that doesn’t mean you will have to put all your wealth in stocks. The same applies to your investment in other assets, such as fixed income, mutual funds, or gold.

You could, for example, invest in six stocks. But if all of a sudden, the market takes a tumble, you could have a problem. This problem is compounded if the stocks belong to the same sector as the manufacturing sector. It is because any news item or information that affects one manufacturing stock’s performance could impact other stocks in some way or another.

So, even if you choose the same asset, you can diversify by investing in different industries and sectors.

2- Explore Other Investment Avenues: You can also add additional investment options and assets to your portfolio. Mutual funds, bonds, real estate, and pension schemes are other investments that you can consider. Also, ensure that securities vary in risk and follow different market trends.

It has generally been observed that the bond and equity markets have contrasting movements. By investing in both of these avenues, you can offset any negative results in one market by positive movements in the other. That way, you can make sure that you’re not in a losing situation.

3- Consider Index Funds: A sound diversification strategy, adding index funds to the mix, gives your portfolio much-needed stability. Investment in Index Funds is also very cost-effective, as the charges are relatively low compared to actively managed funds.

You can diversify your portfolio by investing in stocks and bond index funds simultaneously; it will protect your portfolio from market volatility and uncertainty and prevents gains from being wiped out during market volatility. If you are worried about what exposure should be to each asset class, consider investing in automated platforms such as Wealthface. Wealthface offers you a diversified portfolio of top-performing global ETFs with pre-set proportions of equities, fixed income, real estate, and commodities, rebalanced for free every quarter. 

4- Keep Building Your Portfolio: This is another strategy for portfolio diversification. You need to keep building your portfolio by investing in different asset classes, spread across equities, debt, and fixed-return instruments. Adopting this approach helps to make your ride more volatile.

5- Know When to Get Out: Diversification of portfolios also means knowing when you need to exit your investment. If the asset class you have been investing in has not been up to the mark for a long time, and if there have been any changes in its basic structure that do not align with your goals and risk appetite, then you must exit.

6- Keep an Eye on Commissions: It’s another crucial thing to watch out for. If you take a professional’s services, check out the fees you pay instead of your services.

It is essential because, in the end, commissions can take a toll on the final returns. A high commission can eat away at your winnings.

Finally, diversification doesn’t mean you have no losses to face. It’s still possible to lose some money after all of the processes when you invest. It is not possible to eliminate risk, after all. Diversification, however, helps you lower the risk of market losses to the minimum. Try finding the right balance between risk and return, so you can earn good returns without constantly worrying about your portfolio.

 

Taking care of financial health is equal to taking care of your body. Regular checkups, maintaining healthy habits and proper planning of medication are vital. This 2021, let’s make better and more rewarding financial resolutions.

Let me ask you, how is your financial health? Do you have budget bumps and bulges or financial worries in your life? In this case, you may need to do an annual checkup to assess your financial fitness and start getting your family’s finances in good shape.

To start with, the following questions will help you get a better understanding of your financial health:

  1. Do you spend less than you earn? 
  2. Do you expend no more than 15 to 20 percent of your monthly income for credit payments, including car payments, credit cards, and all other debts? 
  3. Do you have an emergency savings fund to cover at least three months of your living expenses?

The following points will help you get a better look at your finances and make better new year’s resolutions.

  1. Identify your goals: It is essential to have a long-term vision and goals before you make any financial resolutions. The goals will help to steer clear the path from various distractions. Statistically speaking, the rate of success increases if you make and follow SMART goals, i.e.

S= Specific

M= Measurable

A= Attainable

R= Relevant

T= Time-specific

It will help you determine why you want to accomplish a goal, what you are trying to accomplish, by when do you want to complete it and how.

Let’s take an example. If you are trying to buy any luxurious item then before buying you should ask these questions to yourself: What is motivating you to do it? How much do you intend to pay off? By when? And how do you mean to succeed with making the payment over the period you’ve chosen?

  1. Make a flexible budget: Develop a life-changing new year’s resolution of maintaining budgets. However, the demanding part would be sticking to it. Make adjustments in your spending habits and ensure that you are keeping them below your income levels and leaving enough room to save for your goals and pay off the debts. It is always a good idea to make a monthly budget a few days before the month starts by sorting your finances in proper terms.
  2. Identifying the flow of income: Before you track your expenses, it’s crucial to have a look at the income flow from the bird’s point of view. Take notes of what your regular income is, how much is your paycheck and what it looks like after taxes and expenses. 
  3. Track your expenses: Record and categorise your expenses under different heads such as shopping, health, emergency, education and transportation. It will help you analyse and have a holistic view of your transactions, keep your budget in balance and reduce impulse purchases. Categorising your future expenses into want and need will act as the cherry on top. Understanding the difference between a ‘need’ and a ‘want’ will contribute towards building healthy financial habits. Take a financial resolution this new year to make a seven-day expense journal.
  4. Kick the habits that make you spend more: If you tend to eat out frequently or attend social parties, it’s time to pay attention to them. Try to replace these habits and maintain a monthly budget for your social life.
  5. The habit of saving: Incorporating the habit of saving, or as we call it The Habit of thrift in oneself, is life-changing and leads to the brighter side of life. It is a daunting task at the beginning, but it gets easier. We can look at it from a perspective where we see ourselves paying to our future self. If you don’t know where to start, then think of saving it for an emergency fund, a vacation, buying a home or settling with a family- anything that keeps the momentum going for you. 
  6. Invest for the long term: Anyone can invest, but having a smart investment policy will help you have sound financial health in the long run. Just saving the money won’t help in the growth of wealth. Investing in Gold, Property, house, shares are profitable in the long term.

Wealthface is a reliable digital platform for investing. We follow the well-known back-tested algorithm which provides gripping and profitable schemes for investment and helps you grow your wealth in the long term. The plan of action is easy, transparent, and has only three steps.

The key features delivered are:

1) commission-free trading, 

2) expert advice from the in-house experts having credentials from the world’s most prestigious institutions,

3) a complimentary service of auto rebalancing of accounts, and

4) buying of fractional shares and so on

Wealthface offers different pricing categories with exclusive benefits. Start your investment journey with us today! 

  1. Avoid and Clear your debt: Having debt is a sign of bad planning and bad for financial health. It acts like an anchor which will stop you from being financially healthy and peaceful. To keep your debt in check, one must clear it as soon as possible, no matter how much it crunches the savings. It is because getting out of piling debt is as burdensome as finding a needle in a stack of hay.
  2. Become accountable: Consider getting an accountability partner or partners. These are the people you share your financial goals with, who are on the same journey as you or have already accomplished something you are working towards.

As we know, proper planning a day will keep the fear of financial disruption away!

Make your financial resolutions with us and let us help you give your finances a better shape this 2021!

For many people, the word “investing” conjures up images of men in suits, monitoring the exchange of millions of dollars on a stock ticker.

We are here to tell you: To start saving, you don’t need to be the Wolf of Wall Street. It’s all right if you’re more of a Main Street mouse. Even if you’ve only gotten a few dollars to spare, your money will grow with compound interest.

The trick to building wealth is to cultivate healthy habits — like putting away money consistently every month. 

You should start saving, once you have a little money to play with.

You can get a date, a ride, or a pizza on your smartphone screen in 2020.

Investing isn’t any different. If you can automate your bills, why don’t you optimize the way you invest? Especially if it’s just as easy as that.

Digital Forms: Why going digital can simplify your life?

As you know, technology is constantly on the rise and, as a result, more and more people are using apps for different aspects of their daily lives. If we’ve been using apps in our routine, why don’t companies use it? Thanks to digitalization, organizations can have better control over data and operations, improve analysis processes, moreover, decrease the costs, and increase profitability. We’ll show you some of the benefits of Digital Forms.

What are Digital Forms?

This form is created through a Digital Platform and is filled in with an App or a Web page. With the App, you can work with your smartphone without the need to carry paper anywhere. Forms can even be filled in offline mode. Unlike paper forms, digital forms are customizable and adapted to any process that needs to be optimized.

Benefits of using digital forms

  • Boost productivity:  simplifies procedures, integrates with the systems we’re used to in the business, and therefore speeds up data analysis processing.
  • Control the data: It helps to determine who has access to the data.
  • Customize documents: Company can make as many forms as it wants and choose the design that suits best.
  • Save time and money: Digitally filling out paperwork helps to eliminate the time required to retype the data and thereby gain the flexibility to spend in other activities. Having an app allows us to share the same document with different people, save paper, and, thus, money.
  • Real-time information: Any time someone changes a form, colleagues will be able to work immediately on this new edition.
  • Rapid deployment: You can easily build your template using online formats and deploy them easily. You are no longer waiting for print services or to order a form.
  • Fast access to data: The data is immediately available, in real-time, through digital formats.  Informed business decisions can be made quickly and easily.
  • Reduced operating costs:  staffing requirements can be minimized and drive down costs without the need for data entry and/or testing and processing in back-end fashion.
  • Enable the mobile workforce: everyone can now become a “data collector” with the advent of mobile technology. Gathering information from all employees can now be accomplished in the blink of an eye.

Digitalization in Wealth Management

A wealth management consultant typically develops a specially tailored investment strategy and plans for clients to help them manage their assets with the goal to enhance the client’s wealth.

In the viewpoint of the affluent person, wealth management is the science to solve/boost the financial condition. From the financial planner’s view, wealth management is an analyst or consulting team capable of supplying an affluent client with a broad range of financial services and products on an advisory basis.

Traditionally, wealth management clients were segmented by wealth and only available for clients with investable assets starting from $100k. But lately, conventional wealth management was tremendously impacted by financial technology that made it possible to access wealth management benefits for every type of investor, but not only, now you even can do it online anywhere using “platforms” – online services that allow financial advisors to manage the client’s portfolios.

Benefits of digitalization of wealth management:

  1. Millennials and women are becoming the largest client segments. With digital interaction, advisors can now scale their customer base and serve new segments of clients. 
  2. Digital forms of risk tolerance questionnaire and fact-finding information simplify communication between financial advisors. The advisor can ask a client to fill all the information online; once done computer program runs an algorithm that matches the client’s information with a suitable portfolio.
  3. Conventional wealth management is provided with direct human interaction only and paper-based.  Digitalization made it possible to choose the way of personal advice: 
    • No financial advisor assigned 
    • No face-to-face required meetings
    • Traditional full-service financial advisor
  4. Social media platforms can help to get more connectivity with the client and determine the client’s lifestyle and habits. 
  5. New generations are educated and demanding lower fees and more transparency. Only by optimizing wealth management services digitally can help decrease the cost and lower fees.
  6. Advanced analytics and algorithmic tools have helped to optimize asset management. A combination of smart tools and the right strategy minimizes the risks and maximizes the possibility of outperforming the market.

Finally, Investing has never been easier; pure digital portfolio management platforms such as Wealthface can make your life happier by providing passive income without any hustle and low cost.

Are you keen on learning about a factor-based investment portfolio? Are you bombarded with several questions regarding the same? Then, we’ve got you covered! This post will address all your queries and clarify your doubts. 

Due to innovations and technological transformations, there has been a paradigm shift in the asset management industry, especially over the past decade. A plethora of investors has become more systematic in terms of portfolio construction as well as implementation. However, among the most emblematic changes is the emphasis on ‘factor investing’, which has remained at the top-of-the-mind of various investors. 

In this post, you will get to know about how you can build an effective factor-based investment portfolio. However, before that, it is important for you to first know what exactly is factor investing, what are its challenges, and how can it improve your portfolio. So, let’s get started!

What Is Factor Investing?

Factor investing lays its foundation on a very strong idea that factors are the ultimate building blocks of an investment portfolio. It is a simple strategy that prioritizes securities over attributes, which actually leads to maximum returns. 

By analyzing various factors, such as market capitalization, stock price volatility, or credit ratings, factor investing can assist you in building the right investment portfolio and strategy so that you can outperform the market with extensive positive outcomes. Choosing factors that have a long history of providing effective results is extremely pivotal to keep things beneficial. 

What Are The Challenges Of Factor Investing?

Targeting the right factors has become one of the most powerful strategies of investors over the past few years. However, do you know what challenges you could face while integrating the concept of factors into the investment process? Let’s have a look at four major challenges:

Challenge 1: Targeting The Meaningful Factors

It is not an easy task to identify as well as recognize the factors that are intended to provide you with premium returns. Neither is there any single approach to do so. The factor allocation process depends upon various other factors such as the investor’s profile, the risk appetite of the investor, or expectation in terms of the performance. Moreover, choosing which factor or set of factors is worthy for the portfolio is still an on-going debate among different investors. 

Challenge 2: Implementation of Factor-Investing Decisions in a Cost-Effective Way

If the implementation of your decisions can break your bank, then it may not provide you with the profit that you always desire. Hence, you need to implement the factor investing decisions taking care of the finances. But, this can turn out to be a huge challenge. 

Challenge 3: Identifying the Right Strategy

There has been a great diversity and extent when it comes to investing strategies, but the right strategy is what makes the investors find their ways. However, identifying the right strategy is a big challenge. Whether one needs to follow a classic strategy, a traditional strategy, an active strategy, a passive strategy, or any other one – investors always struggle while making such decisions. 

Challenge 4: Avoiding Major Pitfalls

Investors struggle in avoiding the products or services with major pitfalls. Even though they capture effective and premium factors, they are usually exposed to unrewarded risks and clashing factors. Some products or services do well with one factor, but as they are exposed to the other one, things go towards the negative side. And as a result, there is a negative exposure to the product or service as well as a constant clash between various factors. Avoiding them becomes a challenging task for many investors. 

How Can Factor Investing Improve Your Portfolio? 

Now let’s discuss some of the advantages of factor investing. 

 

  • Improved Indexing: In the factor investing approach, effective indexing strategies are designed in a systematic manner to capture the market returns and to draw out maximum benefits from premium factors. This approach renders portfolios with great flexibility and tracking ability so that the investors can create benchmarks in a more consistent way. 

 

 

  • Enhanced Diversification: Single factor-based portfolios may lead to disappointing performances in terms of market benchmarks. A multi-factor strategy is certainly a balanced approach to investing. It gives you a broad exposure while preventing the major and common pitfalls. In doing investment this way, you can aim at high as well as meaningful factor exposure, thus leading to a strong Sharpe ratio

 

 

  • Reduced Volatility: Various factors have pushed many investors to opt for highly effective ways to reduce risks in their portfolios without compromising on the returns. Therefore, factor investing can prove to be a boon for the investors because it tends to fall less during downturns and generates higher returns while adjusting to the risks. 

 

How to Build an Effective Factor-Based Investment Portfolio?

Basically, there are five prominent ways through which you can effectively construct your investment portfolio:

  1. Understand Various Factors: Before starting to build an effective factor-based investment portfolio, you need to first gain an in-depth understanding of various factors. Equity factors are related to the company’s size as well as style (growth or value). Risk factors include those, which can explain risks and returns. Fixed income factors consist of credits, interest rates, and prepayment risks. Besides, factors also include various macroeconomic variables, for example, inflations and commodity prices. 
  2. Diligent Revising: Understand the factor exposures in terms of a previously determined investment portfolio and revise your factor allocation process accordingly. This is a simple methodology that will assist you in gaining a great understanding of the factor exposures. 
  3. Assessing The Risks/Risk-Based Allocation Method: Choose the model that can analyze your portfolio risk exposures as well as can project future risks. By using the risk decomposition method, you can identify how much and what types of risks are present in your portfolio. 
  4. Assessing The Performance/Result-Based Allocation Method: Choose the attributes that can explain the sources of your returns from the portfolio. Always follow a return-oriented approach while building investment portfolios because this will allow you to analyze its future performance.
  5. Factor Tilting Method: This is probably the most widely used method while creating portfolios. In this method, you need to actively tweak your portfolio’s exposure to certain factors. The process of tweaking will be carried out on the basis of existing factor allocation. 
  6. Equally-Weighted Portfolio: This is one of the most popular factor allocation strategies that follows a rule denoted as EW. This rule assigns equal time-invariant weights to each one of the factors. 
  7. Empirical Analysis Of Factors: With the help of various statistics and conditional analysis of the data, you can check out whether or not your factors are robust to outperform in the market. If your factors fail in such types of robust checks, then you can try optimizing or adjusting them according to your requirements. 
  8. Mixed Allocation Methods: If you feel that one method is not providing you with optimum results, then you can also combine two or more methods to follow a more diversified approach while creating your portfolio. A mixed-method strategy will certainly double the positive outcomes as well as the effectiveness of your portfolio. 

Core Foundations of Factor Investing To Consider While Building a Portfolio

  1. Value: The primary aim of value is to extract out maximum returns from the stocks that have relatively low prices. 
  2. Size: A cursory glance at the history shows that portfolios containing small-cap stocks provide greater returns than those with large-cap ones. 
  3. Momentum: Having a great momentum means exhibiting strong returns while going forward in the future.
  4. Quality: Stabilized earnings, lower debts, consistent growth, and strong returns – they all determine the quality of your portfolio.
  5. Low Volatility: If your portfolio is designed while keeping in mind the low volatility, then it possesses a great ability to deliver risk-adjusted returns. 

The Bottom Line

In this competitive world, investors should always choose appropriate ways to capture premium factors in their portfolios. If done accurately, a factor-based investment portfolio can deliver you cutting-edge and positive solutions such as mitigating your risks and boosting the long-term returns. 

Don’t have time or knowledge to build and manage a factor-based investment portfolio? If so, leave everything to us! 

We at Wealthface are proud financial consultants of businesses across the globe. Over the past few years, we have companies and individuals in building their investment portfolio. We analyze each of our clients and then suggest a customized investment portfolio strategy. Our dexterous crew of experts is here to help you out so you may reap long-term returns while eliminating potential risks. 

 

Muslim investors are highly faithful towards their religious principles on financial practices. It has accelerated the growth of a niche market for shariah-compliant products and halal investments. Ensuring that their earnings are Halal is very crucial. People regularly ask us about halal investment ideas. Hence, we are mapping out some interesting places to invest in for 2021. Even if you already are an astute investor, you may find something riveting out here which you hadn’t thought of.

What is Halal Investing? 

Halal investments, also known as shariah-compliant investments, refers to investments in those products which comply with the principles of Islamic law. In modern parlance, Halal investments are socially responsible investments. It is because the doctrines of Shariah ask the investors to protect and preserve five key areas, i.e., religion, life, intellect, family, and property. It is to build a balanced ecosystem between society and the individual. 

The three essential principles laying the foundation of Shariah-compliant or Halal investing are:

  1. Transactions cannot involve Riba, i.e., gaining interest from loans or deposits, even if charged at par with the market rates
  2. Investment in “haram” industries is strictly prohibited.

Halal = permissible, and 

Haram = NOT permissible

Some examples of what Shariah law would prohibit, include:

  •   Interest or speculation
  •   Anything involving alcohol, pork, or meat products that are not slaughtered in an Islamic way
  •   Gambling
  •   Production of weapons of mass destruction
  •   Pornography
  •   Cloning
  1. No investments are made in activities related to gharar (uncertainty) or maysir (gambling).

Halal investments work around 3 Golden Rules

  1. Know why you’re investing –Profile your risk appetite to make reasonable investments as it directly correlates to the returns that you would be generating.
  2. Treat time to be your best friend –Try to understand the perfect time for entering and exiting from the market to make the best return out of your cash outflow.
  3. Diversify your portfolioto protect yourself from the downside in the market. 

What are some of the Halal Investment options?

  1. Stocks, i.e. publicly traded shares of companies –It is the best form of long-term investing which comes with a wide range of choices. Investors have to ensure that these stocks are Shariah-compliant by checking the following:
  • Only common stocks are Shariah-compliant. Any other kind of shares is non-compliant.
  • Non-compliant activities of the business must form less than 5% of the total income of that company.
  • Company debts, cash, and receivables must have some restrictions.

However, an investor must always ensure that these are high – risky investments as their prices can fluctuate significantly.

Listed below are several Shariah-compliant stocks. It is not an entire list, but some of the large blue-chip companies that are traded publicly.

  • Dupont
  • Pfizer 
  • Pembina
  • Abbott Labs 
  • Chevron Corp.
  • Canon
  • Novartis
  • Intel Corp 
  • Exxon Mobile
  • Saputo Inc
  • Adobe Inc. 
  • Johnson & Johnson 
  • Rio Tinto
  • Salesforce  
  • Merck & Co.
  • Sanofi
  • Prologis Inc.
  • And many more
  1. Business Ownership –It is yet another risky type of investment option amongst Muslims and therefore, less common. However, the potential returns are very high as one can exercise direct control over their business. The business owners must make sure that their activities don’t fall under the non-compliant list.
  1. Real Estate/Property – It is the most highly desired type of investments for Muslims. It is a beneficial asset with around 6-10% stable return per annum. One can also benefit from renting and hedging activities and enjoy income tax advantages. Investors must make sure that the property is not utilised as an interest-based mortgage or for non-Shariah-compliant commercial activities. This investment comes with limited liquidity. Therefore, an inspection is ideal before investing.
  1. Land –The central idea for such an investment is to purchase strategic land and sell it for a profit. The amount is accumulated through crowdfunding. 
  1. Cash –A highly liquid and immediately available form of investment. Though this isn’t giving any positive returns, it is generally held in huge margins by those people who do not possess an idea as to how to use this cash profitably. To comply with the Shariah law, an individual must ensure that the cash is held in an account that does not pay interest.
  1. Gold – Considered as a traditional and physical store of safety when it comes to the overall economy, Muslims are highly fascinated by their investments made in gold.
  1. Sukuk –It refers to a fixed-income product which provides steady returns rather than a crazy growth.
  1. Start-ups/Small Businesses – This form of investment comes with a high-risk but also offers a high-reward if done well. It is advisable to go with the notion that the venture you invest in will probably fail. But if you have big pockets to invest in multiple ones, and even if one becomes a hit, it will provide you with tremendous returns.

SWOT Analysis of the Islamic Banking System

Strength: With a good population around the world being Muslims, the demand for such niche products, is rising steadily. In the times of recession, these products are comparatively safer and have been proved better in the recent global financial crisis. It is a proven measure of financial inclusion.

Weakness: Majority of people believe that this system is for Muslims only, however, this is not the case. The lack of awareness about the same demands massive education needs to both the financial institutions and the users. 

Opportunity: There is a large market for Islamic banking, and there are socio-economic developments taking place by of financial inclusion. It is an Asset-creation financial model. 

Threat: This could become a political weapon. It is also difficult for this model to enter and grow in a market which is heavily dominated by conventional banks. 

Wealthface, being a one-stop online investment company, caters to all kinds of investors. It provides tailored, affordable and high-quality investment products and services in a fully transparent manner. The company plays the role of a Fiduciary investment advisor by always putting its client’s interest as the priority. Herein was mentioned some of the many halal investment ideas for 2021. Quickly filter and sort your options and find out what works for you.

Happy investing!

 

With ongoing good news about COVID-19 vaccine and the rise of candidates to provide a quick and efficient solution, we seem to be nearing the end of the pandemic. This is actively reflecting on different industries and specifically airlines, resulting in a jump in airline stocks. 

In an interview with Asharq Business, Bilal Majbour, Wealthface’s CEO, tackles this issue.

MEA – Lebanon

Bilal’s knowledge in the field goes back to his early childhood. He grew up loving the aviation industry, his father being the youngest employee in the Middle East airline. He was so close to the chairman Mr. Salim Salam and always highlighted his patience in working for this industry and for his company.

The aviation industry went through difficult times. In the Middle East Region, in Lebanon specifically, the airline national company was the only hope and the only way to keep the connection between the country and other international communities.

 

 

Read on as Bilal Majbour answers two main questions:

  • How effective is it to buy airline shares, especially after the huge increase in trading last week?
  • How will the large amount of borrowing of the sector companies affect their profitability and the performance of stocks in the coming years?

“The impact of the Corona pandemic on this sector has been catastrophic. The loss of this sector is the worst in its history, at an amount of 84.3 billion dollars. 36 million jobs in the tourism sector are at risk, which is why we saw governments intervene to support this sector.” Majbour said. 

He added that the aviation industry is selling debt at a record pace, reflecting investors’ continued desire to buy debt from companies hit hard by the pandemic – at the right price. Some of these companies are leading this week, such as Boeing 6%, Singapore Airlines 14%, Southwest Airlines 4.8%, and American Airlines 4.3%.

Aircraft companies sold a combined $32 billion in debt in a series of mega deals last week. Boeing raised $25 billion in bonds on Thursday, the largest bond deal ever outside of an airline industry record, by selling Delta Airlines Inc. $3.5 billion in bonds – the largest sale ever.

Moreover, airlines received $123 billion in financial aid. Of this amount, $67 billion will have to be repaid. The remaining balance consists largely of wage subsidies ($34.8 billion), equity financing ($ 11.5 billion), and tax credits /benefits ($ 9.7 billion).

As for governments supporting the industry, Majbour highlighted that it helps keep the industry afloat: “The next challenge will be to prevent airlines from sinking under the burden of debt that aid creates.” He added that governments should support more and this should be more than 10% to airline stocks. If persuaded, it could finally lead to the consolidation of global airlines and the downfall of the flagship.

“We have seen governments in the past providing equity support due to the fact that companies with large debts do not have the ability to operate… Governments often sell their shares when markets recover, which is a good return for taxpayers.”

In Spite all of this, it is worth noting that people’s hope to travel and to discover new things after this world crisis is highly remarkable. “I would consider investing in the aviation industry as a good investment after the crisis even if it will take some time”, he added.  “As an investor, I would avoid buying companies that accept prices. If stock picking is not your thing, you may want to consider investing in exchange-traded funds (ETFs) to track the broader Singapore market or the US market.”

Parenting brings pleasure and responsibility all at once, the responsibility of protecting your child’s future from unforeseen life events. Every parent wants to make sure that their child’s future turns out to be the perfect one. The parent’s primary role should be to invest wisely to ensure that their children get the best facilities to shape their careers and prepare them for the future. Read on as Wealthface’s CEO, Bilal Majbour, sheds light on the best options for investing for the Children.

1) What are some of the best options for parents in the UAE to start investing for their children?

The options to invest for a child’s education for families in the UAE were limited to some mutual funds backed by insurance companies that are always related to an insurance plan. Some mutual funds are provided by brokers or banks that sell their own products.

As we know, people have come from every part of the world to go live in the UAE. For many reasons, the main one is to provide a safe and secure place for their families and, of course, a better environment and education for their children.

Access to proper financial services to start saving for their child’s education is a little bit confusing for parents. They don’t know what the best option is and how to make a decision.

The most important is to explain to the parents with full transparency the difference between a broker and a fiduciary investment advisor and not get confused by the role of each of them before even starting investing for their child’s education, even for their own retirement.

At Wealthface, we have noticed some red flags that could indicate that a financial advisor or a broker is not looking out for their client’s best interest.

So, the best option is to invest passively in a diversified portfolio of ETFs (exchange-traded funds) at a low cost through a regulated company that provides portfolios based on risk profile. It will be better if they offer an online platform so the clients can open an account online and have full transparency on what is going on with their child’s education plan daily. Moreover, have access to the fund whenever they need it without any restrictions.

2) Typically, what are some of the reasons parents choose to invest for their children? Anything besides their college fees?

The main reason parents choose to invest should be for the child’s education to make sure that they can go to college. However, it is notable that  many millennials drop out of college and open their own business because they want to become entrepreneurs. Moreover, social media and technology have helped them to make it possible. Still, any business needs a seed capital, and the money saved for children’s education can become good support to start their lives as entrepreneurs, artists, or any other field they choose to pursue.

3) Can you share a few tips and elaborate on how parents can start investing for their children.

Let’s look at some of the 3 best tips that parents can use to set up their kids’ financial success:

1-Choose a fiduciary:

The first thing you want is to make sure that the advisor doesn’t have their own product to put into your child’s education plan or receive revenue sharing from somebody placing that product in your children’s education plan. 

2- Passive Investments:

It is essential to invest in a basket of ETFs for your child’s education plan, the fee is lower, and returns after the fees are higher than mutual funds, and you can now open it online on some Fintech platforms in UAE.

3- Regulated in UAE:

Ensure that the chosen company is regulated by the Central Bank, Abu Dhabi Global Market (ADGM), or Dubai International Financial Center (DIFC).

The increase of COVID-19 or the novel Coronavirus has prompted many businesses worldwide to recommend that their employees start working from home until the virus spread slows down. It has made working from home our new reality, and it will take some time for us to get used to it. The expectations for the job may be the same, but the atmosphere is not. And it’s not just a straightforward transition. Don’t worry! We will give you the best tips on how to stay productive while working from home.

Remote work is a double-edged sword — sure, you get to remain (or not) in your PJs, but working remotely is more complicated than you think. When you work and live in the same room, it can be more challenging to concentrate on just actually working. Distractions, procrastination, and laziness are much easier at the home workplace. These issues could influence even the best of us, without a professional climate.

There will be days when family members or housemates annoy or disturb you when you need to manage household tasks such as laundry or dishes, while emails stream into your inbox. Staying successful at home may also entail a little extra effort or a rejigging of how you approach your job.

It means it is up to you to motivate yourself to get as much out of your time as you can in an office environment, whether working remotely by choice or by necessity. Because the pandemic seems like it’s going to be around for a while, we’re not going to know when we should safely move back. Now it’s time to improve productivity when working remotely and remain mentally and physically balanced. We have some of the best research from tips on house efficiency to help you work from home, preferably. These tips improve your productivity and help you get your work-life refreshed.

10 Tips of How to Stay Productive While Working from Home

1- Create a Workspace

Since you will now live and work from the same physical location, it is best to build a dedicated room for your “office” at home. Creating an environment that lets you concentrate on the tasks at hand is the secret to making your customized work area a place of efficiency. So, stop working on the couch or bed, no matter how tempting they appear.

Although not everyone has spare space to turn into a home office, there’s always a dedicated and comfortable place in your house. Stop working where you’ll be distracted or tempted to complete your to-do lists without the built-in control that an environment at your workplace offers you. Your work area space will be aligned with your work during the day and will allow you to “clock off” and move away from that space if necessary. A dedicated place keeps space apart from your work and home, without much effort. Hence, making the job easier and more organized from home.

2- Set a Morning Ritual

Seek to construct a morning routine that ends with you beginning the job. It can be as easy as waking up, making your bed, washing your hair, making a coffee, and changing the clothes (or remaining in your PJs, who are we to judge?). But it’s the goal or attitude to each new day that matters. A morning routine leads you through your work, as it is a ritual of head-clearing that prepares you for the day. It provides a requisite mental gap between home time and work time (the role you used to play in your morning commute).

3-Plan Out Your Work

Working from home will get easier if you want to schedule your day just like you do in the workplace. To remain on the schedule, arrange what you’ll be doing and when you’ll be doing it over the day to keep track of your workload. You have to make the best of that by purposefully managing the day. So, it’s best to schedule what you’re going to focus on ahead of time along with your midday break times, and what time you’re going to clock out for the day.

Bear in mind that while it is essential to let your plan change if you need to, sticking to the plan that outlines each task before you start is equally important. One of the best ways to keep you going might be to write down the day’s tasks and cross them off until they’re finished. You may also praise yourself for keeping yourself focused at the end of each job or day. It would make working simpler and more effective from home.

4-Set Boundaries with The People You Are Living With

It doesn’t automatically mean you won’t have “business” per se when you’re working from home. Ensure that your co-workers, siblings, friends, partners, kids, and even pets value your space during working time. Simply because you work from home doesn’t mean you’re “at home.” It is also your duty to let your family members know what they can and can’t do during that time.

5- Communicate with Your Colleagues

Yes, the Coronavirus epidemic has called for social distancing along with social isolation, but avoiding complete social isolation is important. Keep up with your colleagues on the social network. Moreover, for those used to socialize at work, loneliness can easily become a downer. Therefore, the lack of socialization is one of the most challenging aspects of working from home. You would think you would be effective without your chatty colleagues. Still, social contact can relieve feelings of isolation or loneliness even via a phone or video call during times like these.
Even if you’re an introvert, it’s best to try out some immersive activities, so you’re familiar with them if you ever decide you’d like them. It will not only work for your mental health but will also be an important factor in team building. It encourages cooperation and rapprochement among all.
As stressful as some office environments can be, there is nothing about having friends that you enjoy working with and catching up with every day. Therefore, find time to communicate with others while operating from home, if that means making all those arrangements after quarantine or ranting about a workday.

6- Remember that Everyone Works Differently

Every employee has the obligation and the determination to work from home. But bear in mind that everybody has to have their own timetable, their own challenges, and their own tasks to complete, so try not to compare and put yourself down because of it.

Managers should bear in mind that not every employee does the same. Thus, while some do not find the WFH challenging, others may. And now that because of the virus, WFH is classified as an utmost necessity, it is vital to keep contact flowing for those in need and those coping with this transition. But note that a two-way street is a liability. You need to do your scheduled diligence to assure your team and the management that you can manage your tasks from home.

Similarly, in keeping with your peers, you should always strive to interact with your colleagues and accommodate their work timings. Update your management with a weekly or daily email or call so that there is no contact, particularly about difficulties, challenges, etc. Therefore, it is best to keep contact flowing smoothly to promote this interdependence of work.

7-Work When You Feel You Are Productive the Most

Motivation as we know it ebbs and flows during the day. Working the whole day at the same flow, pace, and performance is unlikely. So, know when there are such ebbs and flows, plan your schedule around it. Capitalize on your profitable times by completing the tougher tasks when you know that you are at your peak in development.

One benefit of working remotely is you have more flexibility to handle your time just as you would like. Although preparing your work schedules is important to keep team interdependence in mind, you can arrange your tasks to the timings that best serve your needs. You can either stick to the regular working hours, or you can set your timetables: if you are a morning person, you can start at 7 am instead of 9 am or 10 am if you are more of a night birth you can finish at 8 pm or 9 pm instead of 5 pm or 6 pm.

As there is no commute to work, you easily save time (with no carbon contribution from you), and there is no irritation about traffic either. Since your uniform is your comfortable PJs / sweatpants these days, there’s no need to “get dressed” or stress being “late.” Typically, the time spent on these activities can improve productivity or take between heavy tasks a much-needed break.

8-Identify And Eliminate Anything That Might Distract You

Distraction remains a formidable obstacle when working from home, and only you can conquer it. The trick to being as productive as possible is to do all you can to prevent interruptions and distractions when working from home. If you don’t know the main distractors, you really can’t discover the concentration zone. Isolate yourself from something that can confuse you quickly and develop a constructive strategy to nix these wasters of time.

If social media is your Achilles heel, consider auditing your time and scheduling a schedule where you’ll encourage yourself to browse quickly. If you don’t need the Internet, it is safer to detach your mobile devices and stick to your laptop to function. Even you can try to freeze your social media applications and concentrate on your work. It is an important work from the tips on home efficiency, so don’t discard it.

9-Take Breaks

Scheduled breaks are your element. You can also put in some time off when you prepare your schedule for the day. While distracting yourself usually is easy, don’t let the guilt of working at home prevent you from taking five to relax.

Try taking some time off your desk and phone, even if it’s just five minutes. For example: take a walk around your home indoors, or spend time with others—no scrolling through Instagram or only one Netflix show. Ideally, a break should have no screens involved. It’s when you can get a bit of fresh air, rest, and relax.

10- Choose a Definitive Log Off Time

Creating organizational boundaries involves where you draw your line as well. You need to know when to pause. Although it can seem as if you have versatility in time, allowing you to combine your job with everyday activities, it is effortless to immerse yourself in one activity and lose track of time altogether.

When you’re working from home, logging off for the day doesn’t just mean logging out of your laptop. Establish this habit to suggest to yourself that it’s time to avoid worrying about work, too. Just because you have access to work anytime doesn’t mean you should be logged in 24/7. After logging off, “go home,” even if you are already home. Clear your desk, and turn off your computer to bring a change of atmosphere. Vacate your designated work from the home area and move into another part of the house to truly feel the disconnect.

Finally, don’t be too harsh on yourself and put a routine to end your day. Again, it may be very easy, but it will build a pattern that means the working day’s end. It can be a walk at night, water your plants, read your favorite book, a yoga session at home, play with your pet, or talk with your family. To mark the end of work hours, even the simplest routine has to be regularly followed. You have to figure out what works best for you, above all else. You can face challenges while trying to remain optimistic and concentrated. However, use the aforementioned work from tips on house efficiency to gain ascendancy over time and function.

Exchange-traded funds can be an excellent choice to enter the stock market. The combination of instant diversification and the ETFs rapid liquidity is a strong reason to consider it as a first investment or part of a veteran portfolio. ETFs carry lower risk than individual stocks and have low management fee compared to mutual funds.

Buying ETFs sounds easy but picking a good one is not an easy task.

In this article we narrow the options of ETFs based on our predictions and on what could be a great addition to your main portfolio with Wealthface.

A little more growth ETFs

We believe there are few sectors that have a huge growth potential in the next 5 years. For “go-growth” investors these four ETFs could be a great choice:

  1. E-commerce. The way we shop has changed and even before Covid-19 breakdown, big chunk of global sales was penetrated by e-commerce. No wonder, e-commerce has a huge opportunity to continue growing. Amplify Online Retail ETF (IBUY) is one of the oldest ETFs in online retail space and one of the top-performing ETFs of this year. It is well diversified with 75% exposure into US stocks and 25% into international equities. As we mentioned, IBUY could be a great choice for growth investors with the expense ratio of only 0.65% per annum.
  2. Genomics. Genomics & Biotechnology ETF (GNOM) focus on biotech companies that generate revenues from the field of genomic science, such as gene editing, genetic medicine, genetic diagnostics and so on. Moreover, importance of DNA sequencing in fighting the coronavirus. GNOM has a huge growth potential and has expense ratio of 0.68%.
  3. Cloud Computing space. Cloud space is certainly one of the most popular among ETF investors; any line of business relies on cloud computing today. Cloud Computing ETF (CLOU) has soared this year and we believe it has a great long-term investment opportunity. The expense ratio is 0.68%.
  4. Tech sector shows a long-term uptrend and we thing there is even more to go. The ticker symbol QQQ gives you an ETF Invesco QQQ that monitors the NASDAQ 100 Index. NASDAQ 100 is made up of the largest non-financial companies listed on NASDAQ exchange. This ETF charges a cost ratio of only 0.20 percent.

Defense and high-yield choices ETFs

After reading the first part of this article, you are probably wondering, if I go too aggressive how can I be prepared for declining market due to pandemic or any other unexpected market downturn? Here are some defensive ETFs you can consider adding to your portfolio:

  1. Utilities ETFs. One of defensive holding could be Utilities ETFs. Vanguard Utilities ETF is an income-producing instrument, they pay high dividends and can outperform the market during times of market downturn. If you’re looking for a solid combination of yield and low expenses, VPU is an outstanding choice. VPU tracks the MSCI US IMI Utilities Index, which consists of about 70 U.S. utilities stocks, such as NextEra Energy and Duke Energy. The current expense ratio is 0.10%.
  2. Gold ETF. Traditionally, the price of precious metals such as gold, rises in times of crisis. SPDR Gold Shares is the largest physically-backed gold exchange-traded fund in the world. Wealthface currently has gold ETF in their portfolios but we would like to highlight this ETF one more time. The expense ratio is $0.40 or $4 on every $,1000 invested.
  3. REITs ETF. The combination of good investments returns and growth possibility is always a great choice especially when you invest in REITs, their businesses are safe and have strong cash-flow. That’s why we added Vanguard Real Estate Index Fund ETF (VNQ). It is literally a fund of funds, it is well diversified within real estate of all types such as residential, commercial, storage and so on. The expense ratio is only 0.12 or $1.20 on every $1,000 invested.

When buying ETFs make sure are getting the valuations right and always keep in mind that historical performance is not a guarantee for future returns. Trust the intermediaries who are managing your money and get in touch with Wealthface financial advisor to get free advice.

Leadership can also be seen in established companies and financial institutions. Many of the industry’s best-known influencers and experts are women with successful backgrounds in payments, finance, technology, and innovation spanning 15 years. From the positions of business growth, digital innovation, alliances, and digital strategy, these FinTech veterans have influenced enterprises they have worked on. Tech giants, big banks, and executive boards have leveraged these innovative and influential leaders’ expertise. Read on and discover the top 8 women in Fintech. 

Top 8 Female FINTECH Experts

1-Kahina Van Dyke, Standard Chartered Bank 

Kahina, recently Senior Vice President of Sales and Corporate Growth at Ripple, is a veteran of the payments industry. Her career background includes working on Facebook (as Director of Global Payments). It has helped increase the adoption of financial services apps and SMS by major banks and set its sights on payments.

Earlier this year, she moved to Standard Chartered Bank as Global Head, Digital Platforms, and Data Analytics. Kahina is also a strong voice for women working in FinTech.

2- Carla Ghosn, Visa

Known for continually advocating for payment innovation and FinTech, Carla has helped Visa turn innovations to practice as Head of Business Growth (in emerging FintechFintech). She has her own experience with entrepreneurship at MyCaal, a business she created to change the retail mortgage market.

She is a graduate of the Wharton MBA program at the University of Pennsylvania. In support of digital transformation, Carla concentrates on main collaborations that will advance Visa in financial services and payments.

3-Peggy Alford, PayPal

Peggy has an executive track record for businesses, including Rent.com, eBay, and the Chan Zuckerberg Initiative. She was selected to serve on Facebook’s board of directors (as her first black female leader).

In its current position at PayPal, it manages the commercial division as VP — enhancing global distribution operations and assisting merchants in major markets such as the United States, the United Kingdom, Germany, and Australia.

Peggy is also listed in the 2018 Black Business Corporate Directors Registry based on its membership of the Macerich Co Board of Directors.

4- Carey Kolaja, Au10TIX 

Carey has a varied history with a career spanning more than 25 years across various industries and sectors with the top Fortune 500 companies. As an industry influencer and thought leader, she also participated in TEDx’s famous payment debate (back in 2014). When working at Citi as their Chief Product Officer (CPO), Carey oversaw introducing a range of innovative product enhancements and customer experience improvements.

PayPal was a major player in the global growth that the business witnessed during the financial crisis. In her current position at AU10TIX (KYC / Identity Verification Company), her industry leadership and network have helped the start-up grow its reach and customer base.

5- Diana Biggs, HSBC

Diana’s deep expertise in technology, financial services, and consulting has allowed banks to make key improvements to the strategy and products that have generated improved revenue and customer loyalty.

Until joining HSBC as Head of Digital Innovation, she was part of the program at the University College London Center for Blockchain Technologies and Oliver Wyman Financial Services.

It focuses on new technologies to help modernize banking infrastructure and legacy models. Her business experience has led her to become recognized as an expert in blockchain and Fintech.

6- Kim Crawford Goodman, Fiserv 

Kim brings vast financial services and technology expertise from her 25 years in the area of payments and innovation. Previously, as CEO of WorldPay USA, she is now heading the Fiserv Card Services Team. She has also previously served in senior leadership positions at Dell and American Express.

In 2018, Kim Goodman left her position as CEO of Worldpay USA to become President of the Fiserv Card Services Group. It manages fees, ATMs, card processing, and infrastructure upgrades for card-related services. Kim was also named one of the most influential women in corporate America by Black Enterprise.

7- Anna Maj, former PWC 

Anna Maj is a well-known market pioneer with over 20 years of experience in financial services. Her career began in banking with Citigroup and then in telecommunications with T-Mobile and consulting with PayTech.

Eventually, she received the title of CEO of a payment company (PayTel) based in Poland. In her previous PWC position, she has established alliances between banks and fintechs with a specific emphasis on AI and open banking.

8- Megan Caywood, Barclays 

A well-known figure in London’s Fintech hub, Megan led Starling’s marketplace program before switching to Barclays at the end of 2018 and ultimately becoming its Global Head of Digital Strategy.

Her high-growth career path secured her the top spot in the annual Forbes 30 under the 30 list. She consistently advocates for women in FinTech, particularly in senior positions and as founders, by building diversity in every organization and business line.

Finally, the FinTech (Financial Technology) industry is rapidly evolving with developments in innovative technologies. Moreover, the number of women in Fintech is expected to rise in the future, and they have the potential to reshape the industry.

Who thought you were going to be studying investment strategies at this stage in life? When you hit your thirties, the game starts to change when it comes to your finances. You’re no longer in your twenties’ happy ride, where retirement seemed like a distant imagined existence. Your thirties are the time to get serious about creating a strong financial base for the rest of your life. Don’t worry if you’re a little behind; it’s not too late to get moving. Time is always on your side. Read on and discover the 7 things you need to know about saving in your 30s.

7 Tips for Investing in Your 30s

 1- Build an emergency fund

As much as we all hate to think about it, you might lose your job; your car might break down, your dog might get sick well, you get the idea.

But the most important thing you can do before you try all the investing strategies on the planet is to set up a savings account and keep some extra cash in it. It is only going to be there in case of an emergency. So how much do you have to bring in there? There is no correct solution for everyone, but a reasonable starting point is to have at least six months of living expenses in stock. If you have a family to support, it may not be a bad thing to make a little more of your pillow.

2- Create a routine for your retirement saving

Chances are, you don’t want to work forever, huh?

Of course, not.

2010 Census Bureau data showed that 30.8% of people aged 65-69 years (typical retirement age) still work full or part-time. Choosing to rely on social security to cover your living expenses during your retirement years is just not a smart decision.

So, that means that if you haven’t already done so, you can do your 65-year-old future self a favor and set up a retirement fund—one of the best investment strategies for 30 years.

 To get a sense of how much you need to save for retirement or financial independence, you can use financial planning calculators online, such as Wealthface’s.

 3- Plan separately for major purchases

 You’re likely to make some big purchases in your thirties home, cars, big weddings. It can all add up pretty quickly.

Because each goal is so different in terms of their time horizons and the amount of money needed, it is important to set up separate strategies to achieve each goal.

Suppose you’ve got the sum of your monthly savings for each target. You can float on the autopilot without thinking about when or whether you’re going to meet your savings goals.

4- Pay attention to fees

Even if your thirties are a little late to start saving and investing, note that you’re still likely to have another thirty or so years of full-time jobs ahead of you. It’s better to start your investment plans now than to postpone them forever.

 Just as critical as optimizing your retirement savings, you need to be extremely cautious regarding the fees you pay (concerning both your financial planner, if you have one, and the fees that your investment itself costs).

The sly thing about payments is that they seem so harmless at first because they’re just a tiny percentage of your nest egg, but note, they’re going to be multiplied for the next thirty years.

 5- Create a college savings plan for your kids

Let’s face it; college isn’t going to get any cheaper. Even if you’re not willing to finance your child’s entire education, reducing the pressure on them will go a long way, not only during their college years but for many years to come.

6-Learn to save rather than spend

You need money to be an investor. To get the money, you need to invest rather than spend. This advice is the most obvious one given out by top business professionals. Hence without ado, to be a successful investor, you must do something that nobody in the world wants you to do: save some of your money instead of spending it.

7- Manage your savings and your debts 

Some people get used to saving money based on predicted future inflows. It is a gamble, depending on a rise in income that has not yet been verified. Therefore, always try to spend your money based on your real and present financial situation. It will avoid any significant credit crunch problems in the future and save extra capital for investment.

Finally, you start saving as the best plan for saving in your 30s. You can spend more time exploring or save on the chance to improve your future. Your 30s are the time to take the financial future seriously. Yeah, perhaps many people will assume that you’re young, but you know that that won’t always be the way it is. If you’re still 20 or 35, taking a few easy steps today will make the difference for you and your family when you head to retirement.

Saving your money is one thing, and growing your savings is another. The savings can hold your back in difficult times and help in meeting unforeseen needs. If you grow your money, you’d never land in difficult financial situations. So, are you interested in multiplying your capital? Then, you should find a suitable way for you to invest your money. When investing is taken seriously, the returns can provide you a financially secure future. It may sound like cumbersome tasks to look at all investment methods, compare them, analyze them, and choose the most suitable one. Well, you don’t need to stress out as we are here to guide you. In this post, we’ve enlisted the best investments to make at any point in time. So, let’s get the ball rolling!

How to Choose the Best Investments: Complete Guide

Many individuals have this question in mind: “Why should I invest, and where should I invest?” Well, investing is a great method to put your money to work. It enables you to grow your savings, and it even serves as an additional source of income. It is very important for those who aren’t going to need a specific amount of money for a long time.

Let us consider these two hypothetical situations:

Both X and Y have $10,000 that they want to save, and they don’t need this $10,000 for 40 years. 

Situation 1: X saves money by keeping it safe in his home locker to protect this hard-earned money. 

Situation 2: Y invests his money in mutual funds. 

After 40 years, X is only left with $10,000 for his post-retirement life. In contrast, Y winds up by earning around $452,500 with an expected interest rate of 10% per year. 

In this example, you can see the difference when relying on investment options. Hence, it is always wise to let the saved money work for you and grow over time.

Now the question arises with so many options at disposal, how will you choose the most profitable investment method? Well, you need to consider some factors to make the right choice.

Factors to Emphasize Before Choosing an Investment Instrument

Here are the factors to consider for choosing the most suitable investment medium:

1. Financial Objectives

Before selecting an investment instrument, you should be aware of your financial goals. Are you investing for your children’s higher studies? For buying a dream property? Or, for your retirement? You should take into account your objectives; you will need it before you start calculating how much money you have to save to reach them.

For example, if you are planning to invest your retirement, you will probably have more time and amount than to buy a property.

2. Time Horizon

The time horizon is another important factor that depicts how long you would like to keep yourself invested or how many years to reach your financial goal. Various schemes ranging from long-term, short-term to medium-term investments are available according to your requirements.

3. Risk Tolerance 

It is always important to analyze your ability to have an enormous tolerance of any risk, whereas another may not bear the loss or risks related to the markets. Therefore, before investing in any scheme, increase your risk tolerance power.

4. Level of Growth

It is wasteful to invest in a scheme that is not going to give you satisfactory returns. Therefore, always check out how much growth your investment will witness over time.

Evaluate the previous performances, returns, and other various factors to grasp the knowledge of how your investment will grow and at what level it will expand in the future.

6 Best Investment Options

Let us now have a look at 6 best investments to make :

1. Exchange-Traded Funds (ETFs)

ETFs are always good choices for any type of investor, whether you are a novice in the stock market or an expert investor. The ETFs allow you to build a diversified portfolio with considerably low investments, making them suitable for newcomers in the stock market who have a little money to invest. ETFs are listed and traded on a stock exchange, which makes them liquid and cost-effective.

But you are wondering how to choose the top-preforming ETFs to buy, should you buy a few from different industries? You can spend a lot of time on research, but we recommend considering trusting professional financial institutions.

If you don’t have a big amount of money but want to create a diversified portfolio of ETFs, Robo- advisors like Wealthface can be smart and cost-effective.

2. High Dividend Stocks

Historically, equities have delivered impressive returns but also have a higher risk than other asset classes. Don’t let the bull market exaggerate your equity allocation. Consider adding some high dividend stocks in your portfolio. The dividends provide a kind of a cushion in a volatile market. In case the price of the underlying stock fall, you’re still earning steady dividend income. You can then decide what to do with it, either receive the cash or reinvest the dividend earned.

3. Importance of cash in your portfolio

Cash plays an important role in times of uncertainty. You can use cash and cash equivalents to provide a cushion against job losses, pay for contingencies, or have the ability to invest when the financial universe has clear signs of the settlement. However, cash is suitable only for the short term as it was one of the most underperforming asset classes over time.

Make sure you have 3-6 months of your expenses on your savings account to be prepared for a time of uncertainty.

4. Real Estate

Despite a plethora of investment choices, real estate has proven to be one of the best investments. Properties can flourish their owners with a consistent source of income and low volatility.

However, this type of investment is good for large investors as it lacks  liquidity and diversification. For smaller investors who want to include properties to their portfolio can go for REITs (Real Estate Investment Trusts). A REIT owns and operates commercial or residential properties. Moreover, it pays out about 90% of their incomes to the investors in the form of dividends what makes them favorite for income-seeking investors. REITs are traded on a stock exchange as any shares to be sold at any time.

5. Commodities

Commodities are playing a very important role within your portfolio. Traditionally, the price of precious metals such as gold, rises in times of crisis.

One of the examples of how you can invest in gold is the Gold ETF.  SPDR Gold Shares is the largest physically-backed gold exchange-traded fund in the world.

Like buying or selling stocks of companies, ETFs are traded on the stock exchange during market hours as other stocks. And we already mentioned, it cost-effective compare.

6. Invest in Yourself

Investing in yourself is one of the best returns you will get on the investment, whether it’s investing in learning a new skill, personal or professional development, taking advancement in your creativity, or hiring a coach before you can give yourself a new skill. We must take the time to grow our strengths and abilities so that we can serve others better.

What are some of the steps you can take to invest in yourself?

1. Invest in skills that will enhance your strengths.

Improving your skills does not always mean investing in higher education, although this is certainly an option and perhaps a necessary one depending on your career field. Investing in your skills and training can take several forms.

2. Discover Your Creative Side

Most of us have a reservoir of creativity that has never been tapped or has certainly not been used to its highest potential. We may need to uncover and enhance our creativity. Creativity, in any form, helps us to grow personally and professionally, to see problems and solutions in different ways, and to make use of other parts of our minds that may have been previously untapped. It is important to keep in mind that creativity has many faces. It’s much wider than being a painter or a sculptor; it’s also about trying new things.

3. Nourish Your Mind and Body

Nourishing your mind and body allows you to have more to give now and in the future — more energy, knowledge, compassion, ideas, strength, physical and mental endurance.

Finally, investing in yourself emotionally, physically, spiritually, and financially will make it possible for you to become the best version of yourself. If you’re the best version of yourself, you’re going to be an attraction magnet for others!

Final Thoughts

There are plenty of investment options ranging from safer to riskier, and lower-returns to higher-returns.

To invest like a pro, you must have deep knowledge about the various investment options available. Consider various factors such as financial objectives, risk level, period, growth level, etc., to opt smartly for a suitable scheme.

Always remember that savings and investments are two different things. Therefore, Wealthface helps you to grow your wealth by using a smart scheme of investing.

 

As countries become more dependent on each other for trade and prosperity, the adverse effect of a crisis in one region quickly spreads around the world to affect the global economy. So, let’s find out what financial crises in the past taught us and the reasons and consequences of the following article.

What are the types of Financial crisis?

Unfortunately, financial crises are common in history and often cause economic recessions or even economic depressions. Usually, financial crises are triggered by a bank run, devaluation, and stock market crashes. Other factors to a financial crisis include systemic failures, unanticipated or uncontrollable human behavior, regulatory absence, failures, or contagions that amount to a virus-like spread of problems from one institution or country to the next.

Let’s look at the main types more closely:

It is not a secret that banks’ lending most of the money they receive in deposits; hence it is difficult for them to pay back all these deposits quickly if they are suddenly demanded. When a bank suffers from a sudden rush of withdrawals, a bank run takes place. You probably heard of such events in the United States in 1931, and the run on Northern Rock in 2007.  

You might remember the financial crisis that happened in Russia in 1998 and Brazil one year later, which resulted from a currency crisis. Mexico suffered such a fate in 1994. Currency crisis may be a nominal depreciation of a national currency due to the lack of reserves to maintain the country’s fixed exchange rate. 

A financial crisis is always difficult to predict, and especially if it happened due to the market crash in case, there was a bubble. It can occur when some classes of assets are overpriced because of a buyer who buys an asset based on the expectation that he can resell it at a higher price instead of calculating if an asset’s price is equal to its fundamental value. When many decide to sell, the prices will fall. Well, known examples of bubbles and crashes in the stock market are: the 17th century Dutch Tulip mania, the 18th century South Sea Bubble, the Wall Street crash in 1929, the crash of the dot- com bubble in 2000-2001 and the most serious one was 2008 market crash, which brings us to the famous global financial crisis of 2008. 

What are the reasons for the 2008 market crash?

Back in 2008, the financial crisis shook the world’s economy. That crisis has been the most serious since the Great Depression. It saw banks that were too big to fail to do exactly that. The banking system was losing the trust of both financial institutions and customers.  

So, you are wondering what caused the 2008 financial crisis? Who to blame? 

It was triggered by overheating in the housing markets. The U.S citizens were buying expensive houses, although they did not have enough money for it.

Lenders made it easier to get a loan and approved mortgages even to borrowers with poor credit scoring. Altogether, this was driving up home prices to an astronomical level. 

Meanwhile, investment banks were given the freedom to build up their businesses and in which sector they want to focus on. They established exclusive financial products for the market to trade these mortgages. To gain these profits, U.S banks sold these mortgages known as mortgage back securities to other Banks and investors not only in the U.S but also around the world. The demand for these new financial products increased heavily due to the AAA” ratings; soon, banks were not able to stimulate the high demands on the market. The prime mortgage takers reached its maximum capacity. 

This resulted in banks to start issuing subprime mortgages to borrowers with no income or employment proof to create more mortgages for the market. Banks pledged low and flexible interest rates reducing down payments, which allowed low- and middle-class citizens to borrow more money for bigger houses they normally couldn’t afford. 

This led to an economic bubble and a rising level of default rates on sub-prime mortgages. Warnings about this by respected international organizations were ignored, though.  

 Large financial institutions like Lehman Brothers, Merrill Lynch, and Morgan Stanley all became lenders of mortgages. According to a 2018 paper published by the University of California Berkeley, by the summer of 2007, UBS held onto $50 billion of high-risk mortgage-backed securities, Citigroup $43 billion, Merrill Lynch $32 billion and Morgan Stanley $11 billion.

As a result of a glut of new homes on the market, housing prices across the country began to plummet, meaning that millions of homeowners and their mortgage lenders were suddenly “underwater,” which means they owed more on the mortgage than the estimated value of the property. Owners defaulted on their mortgage payments and lost their homes, and banks that held the securities were pushed toward bankruptcy.

What did we learn from the 2008 market crash? What has had changed since then? And how we can be sure that the same mistakes will not be repeated? 

It’s been a transformative journey over the past 12 years. As companies have worked to rebuild their losses and set goals for the next decade – a journey that raises a lot of questions like what lessons have we learned? Did the government put all the measures to try and prevent a repeat of the crash? How can companies be prepared for future crises? Let’s have a close look at the lessons from the 2008 market crash and actions taken. 

– Central banks of the most advanced countries started to work together more closely to solve global economic problems;

– Banks have become warier of lending money and Central banks have increased the requirements of reserves that need to be held;

– Regulatory changes restricted the ability of investments bank to provide all types of services; now, they can concentrate on only a few product lines.

 The lessons from the 2008 market crash were painful and profound. But such events helped us to get more regulatory supervision and more confidence in the market.

Though the value of investments can fall as well as rise as a reaction to the news, but be careful and do not make decisions sometimes, it’s not related to the real economic situation.

For investors, the best thing to do is to stay diversified, spend less than you make, and adjust your risk tolerance accordingly; diversification has its limits in reducing risk. It is important to see how well a fund manager performs in times of falling. Wealthface strategy was back-tested since 2007, if you check our graphs, you will see that we outperformed the market at all times. Our portfolio rebalancing every quarter due to the market situation. So, you don’t have to worry, check the news and your investments every day.

To avoid the spread of the latest coronavirus, the UAE government directed its residents last month to start working from home. Wealthface offices were empty. Wealth management employees who handle clients’ money in many countries as private individuals were already working remotely for their protection.

But working from home doesn’t secure someone a job. The fear of the unknown caused by this pandemic is on the minds of millions around the world.

Bilal Majbour, the CEO of Wealthface, realized that he could solve one of many concerns. So, he emailed his employees and promised them that nothing would change; they will keep on receiving their salaries despite the COVID-19. He added, “I want everyone to feel safe and focus on serving the clients’ needs.”

The number of infected and deaths has risen dramatically worldwide, and millions have lost their jobs as a result of the battered economy. The consensus is that the crisis has already begun.

Majbour calls his employees daily as a kind gesture to make sure that everything is fine and to remind them that he is here supporting them to overcome this crisis together as one team.

In case there is any cut in salaries, he prefers to start by himself before cutting any employee. The promise is not a reflection of any prognosis; he added that he is “as hesitant as everyone else.”

Wealthface has kept the cash until the end of the year to cover operating expenses. Moreover, we will adjust our strategy as a startup to concentrate on generating cash flow in the short-term to cover our operational costs and employees’ wages.

“I am not working for the money, but to serve people because this is what we do best,” Majbour said.

During the pandemic, our wealth management team is spending more hours and more time to make sure that our clients are being served and supported when they need us.

“We support the decision taken by the UAE government; therefore, we decided to stay at home to ensure that the situation is under control,” Majbour said.

He added, “We are beside the UAE government. We will guarantee to offer all the support to contribute to the society.”

We agreed to serve any client for free during the pandemic, as we have different investment experts that speak different languages to serve different nationalities.

Besides, Majbour assures the launching of a new trading product called Wealthface trade. It helps traders and investors to trade on international markets like the USA, Canada, and the U.K. As it will include the Saudi, Dubai, and Abu Dhabi stock markets for the first time.

Finally, Majbour claims a call to action to all other Fintech and startups.

Bilal Majbour, born and raised in Beirut, always saw his grandfather offer help to people in every way imaginable. No matter the issue, from helping people find jobs, to settling family disputes, Bilal’s grandfather was always there. What struck Bilal the most about that, was the humility with which his grandfather carried out his philanthropic endeavors. He didn’t do it for praise, he did it because he genuinely wanted to help people. As they say, “blood is thicker than water”, Bilal Majbour also inherited his grandfather’s penchant for helping people. After moving to Canada and completing his university degree, Bilal Majbour worked for several renowned Canadian Banks. His firsthand experience with clients fueled his entrepreneurial fire and he founded Wealthface in July 2018. Today, with offices across three continents and a large number of happy and satisfied customers, Wealthface is changing the landscape of automated financial advising. While Wealthface currently operates its “Invest” product, The robo-advisor service is going to launch “Trade” soon.

The Secret Origins of a Fintech Entrepreneur

Maybe it was destiny, or maybe he was born with it. A young and ambitious Bilal moved to Canada to complete his education. He landed his first job at the National Bank of Canada. Bilal had an eye-opening experience during the time of the financial crisis. The frustrations of all the customers who had lost their money really had an impact on him. He channeled his grandfather’s helpful spirit and decided that he must do something to help these people. “I should take the initiative to become a financial advisor”, Bilal said to himself.  

Bilal continued working and learning at big Canadian banks and insurance firms such as Sunlife Financial. Eventually he joined Saxo Bank and moved to the Middle East’s crown jewel, Dubai. Even after Bilal travelled across continents and started working in Dubai, he noticed that most investors faced similar issues, no matter their geographical location. Bilal kept hearing complaints, investors did not know what to do or where to go. They lost their direction and were unable to identify the right tools, they were looking for a solution and they wanted a lot more than just trading tips. As passionately as Bilal wanted to help those people, he knew that he faced an uphill task. He thought to himself “If you go out there and tell people you want to open an investment bank, they would laugh at you”. However, Bilal refused to give up, and decided that it was better late than never and founded Wealthface in July 2018. The foundation for Wealthface’s groundbreaking approach was based on diversification as a remedy to risk, using a Nobel Prize Winning Academic Research.

Wealthface was conceived as a client-oriented and user-friendly wealth management company. Seeing the potential in Wealthface, Yacoub Nuseibeh, previous Senior Executive at the Abu Dhabi Investment Fund and the President of CFA Emirates, joined as a co-founder in 2019.

The Roots of Wealthface

One of the most important problems that Bilal wanted to solve was that most of the existing companies in the wealth management field required hefty minimum fees and there was always a probability of human error, vested interests and the lack of unbiased professional advisors who would put their clients’ interests before their own. Bilal knew that the solution lay in offering efficient, cost-effective and customer-centric services. The real challenge was changing the status quo and helping potential investors overcome the fear of changing how things are done. Bilal met the challenge head on. He decided to create a new kind of wealth management platform that combines brain power and modern technology. A technology that is based on innovative algorithms and user-friendly interfaces on a platform that gives clients unfettered, 24/7 access to their investments from the comfort of their homes.

With a clear purpose in mind, it was time to develop the strategy and execute the idea. Teaming up with colleagues and friends who had worked for years in some of the most prestigious institutions in finance and investment, Bilal had firmly planted the roots of Wealthface.

Story of the Exotic Indian Spice Behind Wealthface

An essential step towards the creation of Wealthface was Bilal Majbour’s 2017 trip to India’s Silicon Valley, Bangalore. He spent a significant amount of time in the IT capital of the World’s second most populous country. India has lots of people, and lots of people mean lots of experiences to get inspired by and learn from. Bilal stayed at a hotel near the offices of global tech giants IBM and Microsoft and interacted with a lot of people who worked there. His rendezvous with numerous millennials who had a great affinity towards modern technological tools and a fast evolving, global and borderless economy, taught him a lot of the impact of technology is revolutionizing human communication and shrinking geographical boundaries. Bilal also met with the students of the Indian Institute of Information Technology in Bangalore. His experience with the energetic and young minds really invigorated him. He didn’t just work with them, he also had fun with them, going out for dinner with a Ph.D class on an occasion. The enriching experiences from India acted as the final injection of inspirational fuel that started moving the pistons of the Wealthface engine a year later.

Bilal describes himself as a global entrepreneur, a Canadian businessman in terms of ethics, a Phoenician in terms of commerce where they have 3000 years of history, an Arabic man in terms of culture and a true believer in the American dream.That’s why he went to New York City, the financial capital of the world and signed the first deal for his firm with Drivewalth, one of the most innovative technology brokers in the world.

What Wealthface Offers

Driven by the vision to make the world of investing available to everyone, everywhere, Wealthface doesn’t shy away from doing things differently. Bilal and his firm are committed to providing investment management services that have evolved from the traditional methods into the new, forward-thinking and effective methods. Wealthface strongly believes in getting rid of the high fees and account minimums and embracing a smarter, more efficient way to invest your money. Unlike many of its competitors, Wealthface allows you to open an account with no balance. On top of that, there are no trading fees as well. These are Wealthface’s three different tiers of account services, along with their features and fees:

Basic Accounts ($0 – $100k deposit)

Fee – 0.75%

What you get:

  • Customized portfolio
  • Fractional investing
  • Automatic rebalancing
  • Expert Advice
  • Free portfolio check up
  • Systemic deposits

Platinum Accounts ($100k-$500k deposit)

Fee – 0.65%

What you get:

  • All Basic features
  • Tax efficiency guarantee
  • Annual financial planning sessions

Infinite Accounts ($500k+ deposit)

Fee – 0.5%

What you get:

  • All Platinum features
  • In depth financial planning
  • Asset allocation
  • Dedicated financial advisors

An ETF fee of 0.1% is charged in addition to the above-mentioned fees. 

Wealthface allows you to invest your funds in globally diversified portfolios of low-cost index funds, in a way that is used by savvy, successful investors. Thanks to its cutting-edge technology and years of experience, Wealthface specializes in minimizing risk and maximizing returns. Wealthface is driven to eliminate complicated, time-consuming tasks of managing wealth and offer simple, straightforward access through automatic rebalancing, dividend reinvesting, and always seeking out the best options for a customer’s funds. “Wealthface is always at your reach and ready to make your financial life a brighter and wealthier one”, Bilal signed off on that note.