span seek to describe the approach to
class="cap">I t’s a risk that investors with each of
topic we’ve talked about these investment ‘personalities’
last January (‘Getting the right might take. Of course, it’s well
mix’) when we showed you some accepted that the higher the
typical asset allocation return you want, the higher the
approaches, but here we take you level of risk you’ll have to
a bit further, by mapping out the take: it’s unrealistic to expect
role different types of your capital to grow by, say, 20%
investments can play. per annum from a low-risk
Before starting to invest you investment. Equally though, that
will already have considered doesn’t mean putting all your
whether paying-off or reducing money into higher risk
debts is a better use of investments – it’s more a case of
available cash. And you’ll have using different types of
set aside a suitable ‘cash investments to create the right
reserve’ to cover for unexpected balance, and achieve the overall
expenditure – it’s generally level of risk that you are
accepted that a minimum of 3 comfortable with.
months income is a sensible
So we’ve focused on three core
reserve. Then it’s a case of types of investments – EFTs,
deciding what level of risk you Funds and Shares – and developed
can take, in order to achieve a way of assessing the part each
your aims. That’s often easier could play in the overall makeup
said than done, for it’s rarely of your portfolio. Why these
black or white, but a question of three? Each has the benefit of
trade-offs.
offering a range of risk levels,
To help you, we’ve developed a variety of different options
three ‘risk’ profiles – Cautious, within that asset type, and the
Medium and Adventurous, which flexibility to be used in
different ways by different doesn’t necessarily mean you
investors. should blindly invest.
Which types of investments you
Having a successful portfolio
use, and in what proportion of shares is a tremendous
relative to your overall assets, achievement, definitely worth
depends on other factors too. discussing with colleagues,
Some of the factors you’d want to friends, family and anyone
consider are: how much money you interested. In conclusion if you
have to invest (either lump sums are just starting out or thinking
or as a regular amount); what of investing in stocks remember,
investments you have already; always do the research, don’t be
your knowledge and experience of afraid to ask for advice and
investing, and the time you have opinions, and bear in mind the
available to manage your following…
investments.
1.Different types of equity
If you are unsure, dont panic based investments – ETFs, Funds
buy or rush into buying shares and Shares can all play a part in
randomly. It is always your overall investment mix.
recommended to research potential
2.Look at your requirements
investments thoroughly. Knowing a across two axes: risk and
companies financial performance ‘inputs’ – the amount of time
over the last three years should knowledge and experience you can
give you a sound understanding, bring to bear.
allowing you to make an informed
3.Speak with our Advice Team
decision whether or not they are to build your own, personal
a suitable investment for you. ‘model’ and for specific
Remember every investor is recommendations.
individual and because someone t>coming company set to boom, id="authorbio"
class="membersnoticewhite">href="http://www.share.com">The hare.htm">share dealing.
Share Centre offer Learn about the stock market,
information and advice on href="http://www.share.com">share online. 
