Do you need experience to start investing?
Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.
How experienced are you at investing? Wherever you put your money, you should always make sure you fully understand the service and product, and the risks, which is where drawing on investment experience can be useful.
The type of investment service is always important to understand, such as a discretionary managed service, which means that you are giving someone, usually a fund manager, the power to buy and sell holdings on your behalf. The manager will not ask your permission before changing your investment, however they will be working within a set objective.
At True Potential Investor, our discretionary managed service ensures you remain with a certain risk category whilst aiming to maximise returns. We work with over 9,000 investment experts in 200 locations to help you do more with your money.
We work with world-class fund managers to create Portfolios made up of asset allocations that may include US stocks, UK stocks, global bonds and various other asset types. The manager will not ask your permission before changing your investment, however they will be working within a set objective such as maximising returns in an aggressive approach or minimising risk in a defensive approach.
As part of your investment experience it is also important you understand funds. A fund is a way to invest in stocks, shares and a variety of other asset classes without having to choose the precise holdings to put your money into. This can help you invest in a much wider range of assets than if you were to research and pick each holding yourself. We create our Portfolios from a range of multi-asset funds.
A lack of investment experience isn’t a barrier to investing, it just means you should take some time to educate yourself. If you are still unclear you may wish to seek expert and professional advice on your plans and requirements.
It’s important to understand the products and services you invest in, so you know where your money is and the value for money you’re getting. If you have any questions about investing, we’re happy to help. You can call us 8am – 8pm weekdays on 0800 046 8007.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.