Invest In Planning Before Planning To Invest
Know the annual investment return you require to meet your goals in life. Without this prior knowledge, you may carry too much or too little risk relative to your needs.
Risk and Reward Are Directly Linked
An investment with a higher level of risk would be expected to deliver a higher level of return than a lower risk alternative over time.
Diversification Is Crucial
The practice of spreading money across different investments to reduce risk is known as diversification. Done correctly, you may be able to limit losses and reduce the fluctuations of investment returns without sacrificing too much of the potential upside.
Your portfolio should combine several different asset classes to significantly increase the probability of achieving your required return for a given level of risk. Asset allocation is the single biggest determinant of the long-term performance of an investment portfolio.
Timing the Market Doesn’t Work
We believe it’s ‘time in the market’ rather than ‘timing the market’ that’s important. You need to be ‘right twice’ to play market timing. This is one of the most dangerous things to attempt to do and very few get this right.
Be aware of costs
High charges can have a dramatic impact on your investment returns. As a result, we believe a low cost approach should be at the core of any investment portfolio.