8 pearls of wisdom for investors
There’s a lot of investment guidance out there. Too much can be overwhelming. So, how can you cut through the noise and find what you need? To help you out, we’ve put together a cut out and keep 8-step guide to successful investing.
The list includes tips on how to manage your portfolio effectively - covering everything from diversification to saving tax efficiently - to help you build, manage and grow your investments with confidence and ease.
Stay invested
This may seem like an obvious tip but actually time in the market is more important than timing the market. We recommend you drip feed money into the market through regular investing.
Learn about staying invested in volatile times.
Be diversified
Assets respond differently to the same events. Maintaining a diversified portfolio across different asset classes, sectors and geographies may provide a smoother ride.
Learn about diversification and asset allocation.
Look ahead
It’s hard to not react to the headlines, especially when they’re gloomy. But remember that the market moves before the economy.
Investors don’t wait for the dawn to break, so don’t become more bearish as the market falls - instead it is preferable to be fully invested, ahead of the upturn.
Learn about strategies for long term investing.
Get started
Time matters more than how much you save. Investing in your twenties is supercharged compared to your fifties. An investor who hesitates for even a handful of years is unlikely to ever catch up with their more prudent friends who get on with it. The early starter can even stop contributing in later years and still end up with a bigger pot.
Learn about timing the market.
Every cent counts
There’s power in small amounts. Developing the habit of regular investing is more important than how much you can save.
Learn more about the benefits of regular investing.
Take the right risks
Risk is rewarded in the long run. For example, the evidence of the last 120 years or so is that shares outperform bonds and cash over long periods. Over 18 years or longer shares have never underperformed other assets so if time is on your side then give yourself the best chance by taking sensible risks.
Learn about how markets recover in the long term.
Know yourself
Invest when it feels hardest. Don’t follow the crowd. Be fearful when others are greedy and greedy when others are fearful. The best investment returns can be achieved when you swim against the tide, investing when most people are too anxious to do so.
What does Tom Stevenson wish he’d known about investing at 30?
Make the market work for you
Volatility is not the same as risk. Short term fluctuations are irrelevant as long as you intend to remain invested. What matters is when you crystallise a loss or a gain. Volatility creates opportunity.
Learn more about investing through volatility.
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Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers - to help our clients build better futures for themselves and generations to come.
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This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.
Prior to making an investment decision, retail investors should seek advice from their financial adviser. This document is intended as general information only. Please remember past performance is not a guide to the future. Investors should also obtain and consider the Product Disclosure Statements ("PDS") for the fund(s) mentioned in this document before making any decision about whether to acquire the product. The PDS is available on www.fidelity.com.au or can be obtained by contacting Fidelity Australia on 1800 119 270. The relevant Target Market Determination (TMD) is available via www.fidelity.com.au. This document has been prepared without taking into account your objectives, financial situation or needs. You should consider such matters before acting on the information contained in this document. This document may include general commentary on market activity, industry or sector trends or other broad-based economic or political conditions which should not be construed as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be construed as a recommendation to buy, sell or hold these securities. While the information contained in this document has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused. The document may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity's funds is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. References to ($) are in Australian dollars unless stated otherwise. Details of Fidelity Australia’s provision of financial services to retail clients are set out in our Financial Services Guide, a copy of which can be downloaded from our website.
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Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers - to help our clients build better futures for themselves and generations to come.
Fidelity International
Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers - to help our clients build better futures for themselves and generations to come.
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