What is stock saving? Things that new investors should know

A lot of people have heard about saving money, but do you know that saving isn’t just saving money, it’s also something that people in the modern era are paying a lot of attention to which is called “Stock savings”. What is this? Is it the same as saving money? ACU PAY is going to introduce you to an investment called “Stock Savings.

What is Stock Saving?

Stock saving is a gradual process of investing in stocks for a period to achieve returns that are close to or meet investors’ needs. People are now more interested in stock savings and fund savings because they are more likely to receive returns than regular deposits, on the other hand, risk increases.

Stock saving is like the old people who bought a lot of land in the hope that the price of land will double in the future. On the other hand, it’s not as easy to buy land as they were at that time because it’s so expensive.

At the same time, stocks have become an investment option for modern people because buying stocks is like owning a company. If we choose a good stock, that stock will give us a good dividend every year. With a principal of thousands, investments can be made.

How is Stock Saving different from Stock mutual funds?

Many people who have just started investing may be confused between saving stocks and Stock mutual funds. It sounds like the same thing, but these two things are different as follows:


  • Stock savings 

Investors who want to save stocks need to have expertise because they have to choose their stocks by themselves and follow the market for stock selection and investment at higher risk.


  • Stock mutual funds

The investment professionals will choose stocks that are worth investing in, so they don’t have to waste time choosing stocks and monitor market conditions on their own. They also use less initial investments, which can be diversified into many stocks, making the risk lower than stock savings.

Who does stock saving suit?

Stock saving is suitable for those who have studied stocks for some time and are interested in long-term investments. For new investors, investment in mutual funds is a more appropriate option because they don’t need to have in-depth knowledge and have investment professionals to take care of them.

How to Stock Saving

1. Study the information and assess risk

Before all types of investments, the first thing to do is to study investment information carefully and assess the level of risk we can handle because some investments are highly volatile and may cause a loss in a short period.

2. Plan and set investment goals

Initially, investments are recommended to be within 10% – 30% of monthly income to maximize efficiency, which can be adjusted according to individual abilities.

3. Open an investment portfolio

Open a trading portfolio with asset management companies that provide services.

4. Save stock the same way as save money in an account.

The method of saving stocks is to keep accumulating stocks. The buying principles may be as follows:

  • Catch the timing of buying stocks for savings

This method is used only when stocks are cheap, analyzed by fundamentals, measured value of shares, or may be analyzed with specific technical factors.

  • DCA automatic stock savings 

This method sets the purchase amount per share and a clear period, such as monthly or weekly, automatically which is called Dollar Cost Averaging (DCA), which saves stock regardless of market conditions. During the expensive market, they can buy fewer shares while the cheap market can buy more shares.

5. Keep up with the news on stock investment and savings.

As for stock investments, it is recommended that investment performance should be monitored continuously for more efficient investment.

Of course, investments are accompanied by risks. Long-term investments don’t always mean success. The most important factor in long-term savings is choosing stocks or funds that can yield good returns in the long term as we hope and don’t stop saving to grow our portfolio and generate dividends as passive income.

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