
With the recent market events, you may be wondering whether or not you should make changes to your investment portfolio. A good number of investors seem to be making rapid investment decisions without considering their long-term financial goals.
While we can’t tell you how to manage your investment portfolio during a volatile, we are issuing you this Investor Alert to give you the tools needed to making an informed decision. Before choosing from the many investment opportunities, be sure to consider these areas of importance.
Draw a Clear Personal Financial Roadmap
Before making the next step of action, you should sit down and have an honest look at your entire financial situation. This is more so if you’ve never made a financial plan before. The first step to making successful investment decisions is to identify your goals and risk tolerance. You can do this on your own or with the help of a financial advisor.
There is no guarantee that you’ll make money from your investment opportunities. But if you have the facts about saving and investing, and follow through with an intelligent plan, you should be in a position to attain financial security over the years and enjoy the benefits of managing your money.
Consider the Right Mix of Investments
Deciding to include asset categories with investment returns that move up and down under different market conditions within a portfolio, you can help protect your investments against significant losses. Going with history, the returns of the three asset categories- stocks, bonds, and cash, have not moved up and down at the same time.
By choosing to invest in more than one asset category, rest in knowing you’ll reduce the risk that you’ll lose money and your portfolio’s overall investment returns will have a smoother ride. In case one asset category’s investment return falls, you’ll be better placed to counteract your losses in that category with better investment returns in a different asset category.
Hopefully, the above tips can come in handy when you want to get the most from the different investment opportunities available.