There are a large and varied range of investment products, a suitable investment portfolio can be created that will offer the possibility of good returns without excess risk. For the slightly more adventurous investor willing to take a risk for the chance of a higher return, the investment market has interesting possibilities as well. When looking to build your investment strategy, there will be some important points to take note before choosing the products that will be right for you.
Depending on the risk level, there will be different investment funds to recommend. There are a number of financial advisers who offer these services but only a few will continually assess the investment markets to ensure that clients money are invested to give them the highest potential for growth.
Generally we have two client types when it comes to investing, those who need and want to generate an income from their investments , and those who are only interested in growth of their investments .
Investing for Growth
After assessing your risk profile, finance experts will give you recommendations based on their continuous research. These recommendations will incorporate all your investment objectives, and will strive to find the correct balance of risk and reward for you. They will also evaluate your investments on an agreed date at least once a year to ensure that your funds are invested in the most opportunistic sectors
Investing for Income
They can also develop an investment portfolio that will minimize your risk, and ensure that you have a guaranteed income from your investments . There are many different investment products that suit income. Finance experts will make sure that you are able to do this in the most tax efficient manner.
Due to the volatility of investments in the last 5 years, more and more investors prefer to have a guarantee attached to their investments , especially those clients nearing or in retirement. Finance experts should continually analyze the different guaranteed products on the market place, and when questioned, they should offer the products to clients that they believe are the most beneficial to their needs.
In general, risk and reward should go hand in hand. However financial services should quantify the risk associated with all these investment funds. They can recommend investment portfolio and try to minimize the risks where it is possible. Finance experts cannot guarantee performance levels but they can monitor risks.
Saving in Investment Funds
While investment funds are primarily designed to serve those wishing to invest larger amounts as a lump sum, many also facilitate regular contributions through savings schemes. Your financial adviser can advise you on how to access products on a monthly savings basis.
All investments are different, and each comes with its own risks and attributes. Discovering your investment risk profile is the first step towards identifying which types of investments suit you best.