How to choose and manage your own investments
Investing has a reputation for being complicated and best left to the experts, but it doesn’t have to be that way.
Successful investing is personal
When choosing funds for ISAs, pensions or other investment accounts, it is easy to get swayed by whatever investments are heavily tipped at the time or are leading the performance tables. The trouble with this approach is that it can lead to a portfolio that lacks balance and has a level of risk that isn’t right for you.
The good news is that much of the work that goes into building a successful investment portfolio is dependent on understanding your personal requirements. And who better to do that than you?
To build and manage a successful investment portfolio, we suggest these key steps:
1. BE CLEAR ABOUT YOUR OVERALL GOALS
Are you primarily looking for capital growth from your investments, an income, or a combination?
2. UNDERSTAND HOW MUCH RISK YOU CAN TOLERATE
The longer you are investing for the more risk you can consider taking as your investments will have time to overcome short-term setbacks.
3. CHOOSE THE RIGHT MIX OF INVESTMENTS FOR YOUR NEEDS
Spread your money across different types of investments and across different regions to help lower overall portfolio risk and expose yourself to more opportunities.
4. SELECT HIGH QUALITY FUNDS
Once you have chosen an asset allocation strategy, it is important to populate it with high quality funds in each category.
5. MONITOR YOUR PORTFOLIO
Investing doesn’t finish at the point you buy your funds. It is vital to continue to monitor a portfolio once invested and to review it from time to time.
Get the support you need
At Bestinvest we have helped to champion ‘DIY’ investing for more than 25 years. Drawing together all of our experience and industry renowned research – from helping self-directed investors to advising on and managing people’s wealth – our free guide will help you decide on an investment strategy that works for your needs, pick top-quality investments and make sure your plan is kept on track.
How to choose and manage your own investments strips away the illusion that investing is only for experts, leaving in its place the simple, key principles of successful investing that anybody can follow.
Why choose Bestinvest for your investments?
We have the straightforward aim of helping you make the most of your investments, and our comprehensive range of services enables you to enjoy as much or as little involvement with them as you like. We spend every day talking to clients about their finances and the combination of our expertise, friendly team and market-leading service saw us voted Low Cost SIPP Provider of the Year and Self Select ISA Provider of the Year at the FT and Investors Chronicle Investment Awards 2013.
The value of investments can go down as well as up, and you may get back less than you originally invested. Prevailing tax rates and the availability of tax reliefs are dependent on your individual circumstances and are subject to change. This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers.
SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Self-directed investors should regularly review their SIPP portfolio, or seek professional advice, to ensure that the underlying investments remain in line with their pension objectives.