Whether you’re a seasoned investor or first-timer, there are some investment fundamentals that you should always keep at the front of your mind, to guide you in your investment decisions.
The sooner you start, the more time you have to increase your chances of higher returns. These factors can make a significant difference to your ultimate account balance.
How much will you need in retirement and how long are you going to be an investor for? Think about your retirement and lifestyle goals, put a strategy in place to achieve them, and stick to it.
Generally, investments with low risk generate low returns. Growth assets, such as shares, carry higher risk, but can deliver much higher returns over the long term.
Don’t put all your eggs in one basket. Investing in a range of asset classes, or diversifying, means your overall risk may be lower than if you were exposed to just one.
Even when the market fluctuates, it’s important to stay calm. Over time, the fluctuations smooth out to deliver more consistent long-term returns.