The real secret of successful investment

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Did you know that 85% of investment performance comes as a result of choosing the right asset class, with only 15% from picking the right investments within each asset class? In practise, that means listing all your assets, dividing them into different asset classes - as in property, shares, bonds, deposits, antiques etc - and then working out what percentage each class represents of your overall assets.

 
Getting the 'big picture' right is critical to your investment success. For example, ideally you would want to buy bonds when interest rates are high and sell when they are low. Conversely, you would want to be in shares when they are low and sell when they are high.
 
As always, you should consult your financial advisers, but do be sure they discuss overall asset allocation with you. There is far more money to be made in getting that right than in most individual investments.

Please note all tips are carefully researched for accuracy at the time of publication, but may become dated with the passage of time.
Tips, in particular those in our archives, should therefore always be rechecked before being used.
 
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