Things to consider before investing?
Before making any investment, there are several important considerations to keep in mind:
Investment goals
Clearly define your financial goals and how the investment fits into your overall investment strategies, such as long-term growth or income generation.
Risk tolerance
Understand your risk tolerance, which is your ability and willingness to lose some or all of your investment. Different types of investments come with varying levels of risk.
Investment fundamentals
Understand the company or asset's financials, management, industry trends and overall economic conditions.
Diversification
Spread your investment across different asset classes, sectors and geographies in order to reduce risk.
Time horizon
Consider your time horizon for the investment and whether it aligns with your investment goals and risk tolerance.
Tax considerations
Understand the tax implications of your investment and how it may affect your overall returns.
Research and due diligence
Do your research and due diligence and thoroughly understand the investment before committing your money. Understand the business model, management, financial statements and any other relevant information of the company you're investing in.
Consult with Financial Adviser
Getting some advice from a financial adviser can help you determine your investment plan to achieve your lifestyle goals – whatever they are. Advisers can also guide you in deciding which investment options may help maximise your investment income. Most importantly, they can help you plan for a future that suits you – whatever that looks like.
Important information and disclaimer
- Any advice on this publication is of a general nature only and has not been tailored to your specific circumstances. Before taking action on this information, please seek your personal advice. Past performance is not a reliable guide for future returns. The information on this page reflects our understanding of the existing legislation, standards, etc.
In some cases, the information has been provided to us by third parties. While the information is believed to be accurate and reliable, but this is not guaranteed in any way. - Neither AIFP nor its responsible persons or employees give any warranty of accuracy, nor accept any responsibility for errors or omissions in the information provided on this page.