How you can turbo-boost your portfolio with penny shares
If you're looking for a way to boost the performance of your portfolio, then penny shares could do just that. Penny shares, shares trading for less than R10, have the scope to jump in price. This gives you the chance to make big gains in a relatively short space of time. Read on to find out why penny shares could give your portfolio the boost it needs…
If your investment portfolio is full of large-cap shares, you probably aren’t going to see record-breaking gains over the shorter-term, the research team at Red Hot Penny Shares
But what if there was a way you could boost your portfolio’s performance?
Well penny shares could do just that for you…
Three advantages of investing in penny shares
Because penny shares are generally smaller, younger and more entrepreneurial companies, you can expect to see more rapid growth in profits. This will reflect in the company’s share price.
Professional investors working for large fund managers and the like tend to avoid investing in penny shares because they don’t meet their mandate. This puts you in an ideal position to exploit these often neglected companies.
Your investment amount will go further. If you invest in a large Top 40 company, R10,000 might only buy you 25 shares. But with a penny share, that could buy you 1,000 or more.
Of course, investing in penny shares is not without risks. There may be a very good reason that a company’s share price is wallowing down at R5.
The larger and more solid the company, the lower the chance of it going down the tubes. But remember, higher risk can result in higher rewards.
If you decide to invest in penny shares, it’s not as simple as randomly picking low priced shares. You, of course, need to do your research to try and ensure you’re making a good investment decision.
So there you have it, how you can turbo-boost your portfolio with penny shares.