Investment strategies

Your investment strategy should match your needs, objectives and time frame. Many investors continue to invest with a regular investment plan. You can also make choices about how to create an income stream.

Set your priorities and your strategy will follow

Risk

The most important factor in the risk-return equation is you. Consider the level of risk you are prepared to tolerate. You want a financial strategy that will allow you to sleep soundly at night while you are working towards your financial goals.

Time frames

One of the key factors affecting your investment strategy is your investment time frame. Are you in for a short-term goal, the medium term, or wanting to create wealth in the long term?

What time frame might suit you?

Regular investment plans

If it's not in your bank account, you don't miss it, and you don't spend it. Most investment managers offer a regular investment plan in which you choose to have an amount deducted from your bank account or even your payroll. You gain the advantage of dollar cost averaging (see right), and it's an easy way to be disciplined about your regular investments.

Start a regular investment plan

Dollar cost averaging

If you don't have the stomach for a roller-coaster ride, dollar cost averaging might be the strategy for you. It involves investing a set amount of money at regular intervals. The idea is to gain an advantage from rises and falls in the investment price by buying more when the price is low and less when the price is high, and so reducing the risk of loss.

See the benefits of dollar cost averaging

Find out more about investment

Download a copy of 'Investing made easy' (PDF 1.73MB).
Find a financial adviser using BT's Adviser Referral Program.
Learn about BT's managed funds.