Investing is a great way to increase your wealth and work towards achieving your financial objectives, or boost your income to improve your lifestyle. But, it is by no means a smooth process, so what should you do in order to make the most of your investments and stay on course to achieve your goals?
Diversify – If you limit your investments to one market or industry, you could be particularly vulnerable if it then experiences any shocks or volatility. It is a good idea to diversify your portfolio across a variety of assets and markets, so you are exposed to less risk and better able to withstand any market difficulties.
Stay Emotionless – Emotions can run high if the stocks you have invested in start to drop. But markets go up and down all the time, and they always recover, even after the biggest shocks. If the value of your investments plummet overnight, do not let yourself be guided by your feelings and emotions. Sit tight, stay calm and stick to your long-term investment plan.
Rebalancing – Many investors fail to check their asset allocation regularly and adjust the weightings of different asset classes in their portfolios. However, it is really important to do this, to limit your exposure to certain assets and remain diverse. By rebalancing, you can be confident your portfolio reflects the amount of risk you are happy to be exposed to and that it aligns with your long-term goals.
Work with the right investment adviser – Getting the right advice is essential if you are going to be a successful investor, so make sure you turn to a professional, regulated adviser who will act in your best interests.
Thinking long term – As we have always stressed, you need to adopt a long-term strategy to investing. It is important you are willing and able to give your investments time for growth.
Set clear goals – You can only determine whether your investments are successful if you have a clear idea of what you want to achieve. Set defined goals from the outset, so you can measure whether or not you are on course to reach them.
If you have any questions about managing your investment portfolio, please feel free to get in touch and we will be happy to speak with you.
