3 Tips for First-Time Investors

Saving up for retirement? Or are you looking to improve your financial security?

Having a portfolio of investments will be useful in helping you achieve your goals.

It’s no secret that investing in equities boasts greater returns as opposed to having

money tied up in savings accounts. Paying money into investments that may

fluctuate in value can be daunting, but this doesn’t mean that it can’t be done.

Check out our tips below on investing wisely and effectively.

Attitude Is Key

No investment is without risk – so if you’re a naturally cautious individual, perhaps it’s time

for you to be a little bolder! That said, it doesn’t mean that you can be all gung-ho when it

comes to investing. A good first step would be to think through the following in building

your personal investment strategy:

• What do you hope to achieve from your investments? What is your financial goal?

• What would be a realistic timeline for achieving your goal?

• How much can you afford in terms of investments? How much are you willing to lose?

Start Small With Collective Funds

Experienced investors typically buy individual stocks and shares in companies they

want to invest in, but this can be risky for first-time investors. You may want to

consider investing via collective funds (like unit trusts), where your money will be

pooled with contributions from other investors, and a fund manager will be in

charge of deciding which investments to buy and sell.

Diversify

You’ve probably heard of the adage, “Don’t put all your eggs in one basket.” Lower

the risks of investment by investing across different asset classes. That way, even if

one asset class does not perform well, your overall returns will not be adversely

affected.