The general rules of any first time investment are generally:
What is your favored period of time for this investment?
Have a plan for the duration of time to want to invest for, generally for reasonable growth a lowest period is five years but the longer the term the correct your chances of making revenue over inflation.
Know your ATR (Attitude Risk Profile) and what you are comfortable investing in
There are many instruments to help assess your ATR and you can find numerous internet questionaries on this subject, indeed one of the initial things a money advisor will establish is the clients ATR.
How much of your investment can you afford to lose in the little term?
Always have a best idea on how much of your investment you can afford to lose in the little or medium term, this way you can spread your finance according to the level of danger you are prepared to take.
What is your full objective, is it income or growth?
During the early years many young customers may want to get high growth or growth in increase of inflation in order to build up their wealth.
While other older customers approaching or in retirements, may want to revenue options with further tax saving advantages.
Have a best clear idea about your present tax status
With so many various investment products in the market it is vital to know your present level of taxable profit and which products may provide more longer term advantages.
Always split your investment as between low, medium, total percentage and adventurous funds
It is quite general for many clients to spread their investment portfolios over various kinds of assets from low danger securities such as fixed and deposits interests with medium danger products such as gilts, distribution, bonds right up to higher (adventurous) danger which can include various stock markets and private shares and stocks.
Have you learnt anything from last investments?
It is forever handy to be capable to review previous investments; what went well and maybe what did not do well, was the right timing, the spread, etc.
Have a plan B if markets goes down or increase sharply
Deciding on your feedback should your investment move down or up quickly in the early years is clearly a benefit, knowing how you will react provides a best indication of how to build your portfolio over the medium, short and longer term.
Keeping daily reviewing how your portfolio is going
Always spend a sometime maybe only a few minutes every week seeing how everything is moving, what is doing perfect and why, what is not doing perfect and why, whether you need to re-balance your portfolio over time to suit any replacement in your danger profile.
Remember forever try to diversify
Don’t have all your eggs in only one basket have 10 or more baskets. You can try and have a best spread of investment fund managers in various market sectors not only insurance, mutual products or banks.
Take benefit of any tax incentives for investing
It always makes best sense to use whatever tax perks that are available, such as allowances, tax relief, deferral, thresholds and tax free status etc.
Be clear; forever speak to an experienced independent financial adviser
It might be best to try a few things out yourself but vitally when dealing with your most vital assets such as your pension or life savings etc then save yourself a lot of time and trouble by discussing your objectives and needs with a financial advisor, use his experience and knowledge to save your issues in the future.