Yes, there are varying degrees of risk when it comes to investing but risk is also linked to return. You are already saving your money, so why not make your savings work hard for you?
For conservative investors, go for endowment plans, some of which may have guaranteed returns. If you can stomach more risk, consider mutual funds, which invest in a wide range of assets, which are generally less risky than investing in single stocks.
Do you remember the days back in school when your parents encouraged you to study maths even though you found it really boring? In the same vein, you might not think that finance is the most exciting topic in the world but like maths, financial literacy is a must-have.
Financial calculators can help you simplify the process of calculating your investment returns, how much you need for your retirement or how much you need to save for your children’s education.
If reading long market reports turns you off, go for bite-sized summaries provided by banks and financial institutions. These can give you an overview of the market and a better idea of which geography and asset class to invest in.
Seeking help from a financial advisor, whether you are chatting online or face-to-face, can help to get you up to speed with the latest market updates.
Some people worry that they will need to spend a lot of time reviewing their investment portfolios. But checking too frequently may even lead to making some bad short-term decisions. Generally, a half yearly review may serve the needs of those with diversified portfolios across asset classes.
Still not convinced? Consider investing in mutual funds. These are professionally managed, taking the hassle out of the investment process, leaving you with more free time to spend with the people you love.
Many people are so worried about looking uninformed that they would rather not ask about investing at all. If you ask yourself these basic questions, you will be well on your way to starting your investment journey.
Want to learn more? Everyone is constantly looking for ways to grow, preserve and distribute their wealth. Talk to our Wealth Specialists today.