Investment methods in the stock market

Here are 4 investment methods to use in the stock market. With the 4 methods mentioned in the article, the wind of the concrete situations that have taken place in the market so far has been tried to be taken behind.

Share return

Since 2012, the rate of inflation has been 394%. Since 2012, the USD/TL exchange rate has increased by 932%. 144 shares out of 439 company shares generated a real return in dollar terms. (Success rate: 32%)

Index return

The BIST 100 index returned 536% in the 10-year period. This is above the announced inflation rate of 394% but below the USD/TL rate of increase. According to the index where each stock has equal weight, the index return is 1601%. The average annual inflation-adjusted return is 13.15%; the real annual return in USD terms is 2.51%.

Methods

The BIST 100 index was not successful in generating real returns in dollar terms. The probability that investments made by selecting stocks are successful in generating dollar-denominated returns is 32%. The index return of each stock with equal weight was successful in generating real returns in dollar terms. Accordingly, it is possible to take the positive wind of the historically realized return with 4 different methods.

Method 1

Considering that the rate of stocks that have been successful in generating dollar-denominated returns in the last 10 years is 32%, the importance of accurate stock selection becomes clear. Accordingly, one should not miss the right stock picks. Therefore, it would be the right method to prefer mutual funds that can better observe the market.

Method 2

Among the methods to beat the index, in addition to equity-intensive funds, it would be a logical choice to purchase an exchange-traded fund that invests equally in the shares in the BIST 30 index. (Exchange-traded funds can be bought and sold like regular mutual funds).

Method 3

Periodically, it is observed that sectors generate different returns on different dates. Therefore, it would be a logical choice to hold stocks from different sectors in your personal stock selection.

Method 4

It would be a logical choice to prefer the private pension system for a long-term stock investment. Source: Appajubi TEFAS BIST PA Social Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account! The investment information, comments and recommendations contained herein do not constitute investment advice. Investment advisory services are provided on a personalized basis, taking into account the risk and return preferences of individuals. The content, comments and recommendations contained herein, which are in no way directive in nature, are of a general nature. These recommendations may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not produce results in line with your expectations.