Before investing

The same basic rules apply for investing in managed funds as for any other types of investment. These rules include setting your goals, investing to suit your timeframe, understanding risk and, most importantly, getting expert advice.

For a quick guide to some of the basic principles of good investing, check out BT's Investing Truths.

Don't let your tax obligations come as a surprise. There are tax implications around any type of investment. You should understand how these will affect you before you invest.

What tax implications should you look out for?

Risk can't be avoided, but it can be understood and managed. Generally, higher risk means higher potential for long-term gain. However, it also means higher potential for short-term loss. Diversifying your assets, investing for the long term and enlisting experts are all important ways you can minimise risk.

Work out your risk profile.

The time frame of your goals will generally determine how your money should be invested. Start by choosing whether you want short, medium or long-term investments - or a combination.

• Short-term investors may prefer low-risk investments, such as cash or fixed interest.
• Long-term investors may prefer higher-risk growth assets such as property or shares. These are more susceptible to short-term losses but offer the prospect of long-term gains.

Life would be boring if it didn't change. Life events affect your investment needs and should also mean you review your investment strategy. After all, if your circumstances change, so should the way you prepare yourself financially. Put your goals in life first, and make your financial strategy follow.

Check out investing at different life stages in our 'Investment basics' section.