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Many investors
have suffered financially in a time of
falling stockmarket returns and the
lowest interest rates in over 50 years,
so is it time to cut your losses or is
there a future for stockmarket
investment ?
At a time
when returns from investments have
fallen, it is understandable that many
people are concerned about what
financial return their money is earning
for them. It’s not easy to know the
best time to move your money when you
can’t predict what the future holds,
especially when bank interest rates are
so low.
Most
investments should be seen as medium to
long term (5 years +) and this generally
helps to smooth out the return – if you
look at the performance of a fund over
one year you could well see a fall in
value, however, look at the same fund
over a five year period and it might
actually perform very well. The
stockmarkets have been through crashes
before and have still managed to pull
through to provide good returns over the
medium to long term.
Another
thing to consider is the risk profile of
your investment or portfolio. It’s
important to realise that not all
investments are high risk.
In fact,
a lot of investments cater for the
cautious investor and there are even
some that offer up stockmarket growth
potential with capital guarantees and in
some cases, guaranteed levels of return.
Investing
while the stockmarkets are low means
that you are buying at a low price. This
offers great potential for a good return
while the markets are in recovery. If
you wait until the markets have fully
recovered you will have missed out on
this window of opportunity.
If
you want further information on
investment planning or ISAs you can
contact us on
0141 332
8004
and an
EISFS
Independent Financial Adviser
will be happy to discuss your individual
requirements in more detail.
Key points
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Stockmarkets have
pulled through bad times before.
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Not all investments
are high risk.
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Some investments
offer capital protection and
guaranteed growth rates.
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Investing while
markets are low offers great
potential.
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Seek Independent
Financial Advice before investing.
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