The Golden Rules of Investing

Investing is the quintessential key to financial planning. No financial plan, short term or long term, can be effective unless there is an investment strategy integrated into the approach. When you actually start investing, you would have to endure a learning curve. Knowing a few of the golden rules of investing can help you through the nascent phase and you can hone your skills, acumen and judgment as an investor.

• Start with your goals, time horizon and capacity for loss.
• Understand the investment, its fees and how readily you can sell it.
• Diversify rather than relying on one asset or market.
• Avoid pressure to act quickly or promises of guaranteed returns. Trying to time market movements can increase risk.
• Review your plan when your circumstances change. Obtain licensed financial advice when you need a recommendation tailored to you.

See Moneysmart: develop an investing plan.

Be a dedicated investor, check your investments, study and review your strategies.