The first and foremost thing that is needed to be started with is that beginners in investment issues should start their activity with some basic objectives and, first of all, they need to fully understand them before putting in their first investment portfolio. In the information below you will read some of the vital key pointers to guide beginners.

The first thing to be mentioned about investment basics is income generation objectives. It is important for you to be aware of that this is more concern about current income then capital appreciation overtime. You should pay attention to that trading is an aspect to income generation where the time horizon is rather shorter.

The second key factor, you have to know also about growth objectives. As a matter of fact, investors are concern about capital appreciation and ready to take on a longer term objective. An example current specific market situation can be used due to the fact that it is a good time to take on equities or funds position as extreme price bargain is available now.

The third point that should be taken into your consideration is capital preservation objectives. You should keep in mind that this is a concern on the risk involved especially when one reached near to retirement age. The point is that there is a need to diversify their portfolio into allocation of stocks, bonds and cash in order to minimize the risk. In the case that some individual is near retirement age, he/ she should not allocate more then 25% of his total funds on equities.

The forth (and the last one in this list) vital point for you to keep in mind is that there are different kinds of investment instruments and it is necessary for every investor to know everything about them. So, they are the following ones: savings accounts, fixed deposit, Bonds, Stocks, Commodities, Mutual Funds, Derivatives like Options, Contract for Differences and Real Estate.

It should be also added that there are the common factors that investors need to consider while selecting the different instruments. So you can choose from the next given instruments:

• You should consider time horizon of the investment.
• You should consider risk tolerance and management.
• You should consider rate of return or yield.
• You should consider diversification to spread the risk.
• You should consider taxation concern.
• You should consider the size of investment units. Some stocks can only be bought with a minimum of 1000 shares per lot in certain countries.
• You should consider the liquidity and marketability of the stocks concern.
• You should consider the security of the principle sum invested and the needed income that one would expect.

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