Ipswich Financial Adviser

Posts Tagged ‘Equities’

When you are looking to invest money or invest within a pension, it is of paramount importance that you diversify where you invest your money.

There are many different asset classes that you can invest in such as, Equities, Bonds, Gilts, Property, Cash and Commodities to name some of them.

Ensuring that you invest in a spread of these means that you are not backing a one horse race. If you only invest in one area, you stand a good chance that you may not get the returns you had hoped for. However, if you spread your money between the various asset classes you ensure that you can make the most of all the investment opportunities that are available.

By diversifying you get the benefit of lowering your investment risk, but with the upside of potentially greater returns, a win / win situation.

You should always get professional help to ensure you have the right mix of investments and that the investment risk you want to take is matched by the spread of investments you put your money into. 

Getting the combination right can mean the difference between making a return or loosing money.

Please feel free to contact Thompson Financial Consulting Ltd, should you require any help or advice ion planning your investments or pensions.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

When you are looking to invest or put money away into a pension you MUST consider where you are going to place your money e.g. into what are you going to invest.

Are you going to invest in Equities, Property, Gilts, Bonds, Cash, Commodities etc, or a combination of these?

But this is not your only decision, once you know what asset class you are going to invest in (Equities, Property, Gilts, Bonds, Cash, Commodities etc) there are many sub sections to these investments. For example, Equities can be in different parts of the world, UK, North America, Europe, Asia, Emerging Markets etc.  So you need to decide on that.

Further more, there are more sub sections such as large, medium or small cap equities.

As you can see the choice is huge and that is ONLY ONE asset class. You need to consider all these options for all of the other areas to.

So the above is too difficult and you decide that you will invest in a “Managed Fund” so that the decisions are made for you, but how do you know the Managed Fund is any good and will provide you returns? How do you know that the investment risk rating of the fund matches the level of risk you want to take. Managed funds can range for 3 up to 9 out of 10 on investment risk ratings depending on how the fund manager invests the money! Would you want to take that much investment risk with your money without knowing?

This shows that you should get professional help in organising your investments and pensions, to ensure the money works as hard as possible for you.

Please feel free to contact Thompson Financial Consulting and we will be happy to guide you through the right investment choices for you.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

When I am reviewing clients existing investment and pension holdings the one mistake I see time and again is the narrow way in which the investment content of the policy has been set up.

You will typically set the policy up within one or two funds and you have confidence that this will provide you with a return over a period of time. Unfortunately, the economy and markets  are always changing, so you need to ensure you have money invested in different types of funds so that you spread (diversify) your money. For example, if equities (shares) are not doing well, it could be that fixed interest holdings or property might be doing the opposite and are providing good returns. If you hold all your money in equities then you are MISSING OUT on potential returns from other areas that you do not have any money invested in.

This is why it is SO IMPORTANT  to spread your money between different funds and investment areas, so that you get access to a diversified portfolio and hence GREATER long term returns.

Don’t get caught out and believe that one type of fund can provide you with a consistently good return. You need to ensure you spread your money and with it, spread your risk for GREATER long term returns.

Please feel free to contact Thompson Financial Consulting and we will be very happy to help in advising you the best way to set up your pensions and investments to get the best potential returns.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

Are you on the edge of a cliff!

I come across many clients that invest in a manor that can only be described as ”at the edge of a cliff ” a very precarious place to be. This is down to a lack of knowledge as to how to invest money. These people choose to invest in one particular investment area, great if things are going well but NOT good when the investment sentiment turns against them. Their hard earned pension or investment money heads downwards at an alarming rate, just like falling off a cliff.

Make sure you diversify your investments, ISA’s  or pensions into different areas like Equities, Property, Gilts, Bonds, Cash and Commodities.  If investment sentiment turns against you, you are then a long way back from the “edge of the cliff.”

If you want more information or help in setting up portfolios for investing go to Thompson Financial Consulting Ltd

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.