Investing in your future

Investments can be an excellent way to achieve your financial goals and fulfil a lifelong dream such as buying that house you’ve always wanted or starting your own business. Many experts agree that the ultimate key to successful investing is experience. But what if you are new to investing and you don’t have experience to depend on?

Here are a few tips that can help you start building your investment portfolio:

1. Decide on your goals

Decide what you really want from your investments and whether you want to invest over a longer or shorter term. Starting out with a clear plan and specific goals in mind will help guide the rest of your decision-making along the way.

2. Make an investment plan.

Decide whether you want to start out with low-risk or medium-risk investments, which will help you to decide on the options that will be most suitable for you.
You also need to decide whether you want to focus on one type of investment or rather diversify your portfolio. Many investment experts recommend diversify your investments to avoid having a dip in one stock sink your entire portfolio. Business magnate Warren Buffet, however, warns that diversification is not always a good idea. Business Insider reports according to Buffet diversification might reduce the volatility of your portfolio, but can also reduce your focus on individual investments.
Speaking to a professional broker or financial advisor can help you choose the investment plan that works best for you.

3. Only make investments that you understand.

Making investment decisions that you don’t quite understand based on a friend’s choices or a trend in the market, could have dire consequences. Invest in businesses that you understand and that are not completely reliant on a 100{6e7d3c58d7837ee85997822d4a3aead62e2ad9738b8d4408a30cf5e510358c4b} accurate forecast for the future. Keep the extra charges in mind such as dealing charges, fund manager chargers or stockbroking services.

Speaking to a professional with experience in investing, can help you make smart decisions to reach your investment goals.

Contact Northern Natal Insurance Brokers for guidance from their well-trained and highly experienced team to start building your investment portfolio.