How do I invest in different markets?
If you want to invest, you have two main options. You can either do it yourself or pay someone to do it on your behalf. There are pros and cons to each approach but one common factor is you will need to learn as much as you can about investing.
If you want to use a professional licensed adviser your conversations will be far more productive if you’re already armed with knowledge and information on the investment basics and the different types of financial markets.
Going it alone
While going it alone can give you a sense of control over your investments it also means you will have to be actively involved. You will need to make time to learn about investing, to read the financial media and any other information and create an investment strategy. It can involve a lot of administration and commitment but it puts you firmly in the driving seat.
Outsourcing
Many people choose to use a licensed financial adviser. Professional advice from a qualified, licensed adviser can be invaluable in developing an investment strategy. You will have to pay for advice but it can remove some of the pressure of trying to do it all yourself. Even if you have a good idea of what you want to do, it may be helpful to seek advice just to confirm you are on the right track.
Managed funds
Managed funds enable you to invest while allowing you to pass the burden of management and investment strategy into the hands of specialists. Even if you have never invested before, a managed fund can make it easy for most people to enter the investment market. You don't need a lot of expertise to become an investor, because you can leave the investment decisions to professionals.
By pooling your money with other investors, the fund manager has the buying power to invest in many different asset classes and sectors on your behalf to spread your investment. The professionals managing the fund locate investment opportunities and work to achieve better results than you might expect to achieve on your own.
Learn more about Markets
- What types of investment markets are there?
- How do I invest in different stock markets?
- What is market volatility and how can this affect me?
- What affects share prices?
- How do I understand financial market performance?
Did you know?
Market volatility concerns changes in the value of your investments in a financial market. Generally the higher the risk associated with the investment, the greater its investment volatility.
Investment Performance is your total return, made up of both income and capital growth.