Stockmarkets Getting You Down?
Avoid The Risks Of The Market And Invest More Often.

By : Joe Daly,
Daly Investment Planning Ltd,
Ballinrobe,
Co Mayo. ( 094 952-0921 or e-mail: info@dip.ie )

Over the last 12 months Stock market uncertainty has cast a shadow over investments just as investors might be thinking about urgent action for their future and looking ahead for the best opportunities for 2009/2010.

What might be the most prudent course to take?
It's not an easy time for any would-be investors; on the one hand, we are all continually reminded of the long-term benefits of investment; while on the other, over recent months the stock market has given private investors precious little encouragement to take the plunge and tuck away that nest egg whether it is by saving regularly or with a lump sum or a mixture.

Therefore it is all the more important that you, the investor, are clear that you are buying for the long term and that you should take the time to gather all the necessary information to ensure that what you buy fulfils your needs. Would you rush out and buy the first car or house you see? No you would do some research before this spending of money. There is a real danger that you may become confused by all the information that is coming at you and you should seek professional advice.

You do need to understand the risk/reward scenario of any particular fund/investment that you make. You should find out what your money actually invests in, how many stocks are held, how experienced the fund manager is, how long the fund has been in existence, and so on. Investors need to study which sectors are likely to perform well in the future, not opt for ones hat have always been popular or that are suddenly fashionable. If nothing else education will help you make better judgements on the quality of any advice you take It should be down to your investment advisor to do this for you.

You should not allow yourself to be seduced by fashionable funds without looking at the whole fund range available to you and ensure that the investment chosen is suitable to your requirements now and in the future. Ensure you look at your overall investments taking everything into account.

The mechanics of your investments are also worth thinking about. In the current uncertain investment climate it may make sense to avoid plunging your entire savings into any one particular fund but to use a spread of options/funds and fund managers to provide diversification. If capital security is your request then it would be important to realise that this can be at a cost to your returns.

Options would be to invest part as a lump sum and feed the balance in over the rest of the year via a regular savings scheme. If the fund does fall in value, regular saving means that each month your standing payment will buy more units in a fund as they become cheaper. When the value of the fund picks up again you will benefit form the higher value of a greater number of units.Finally, investors looking for investment advice should contact an Independent Financial Adviser as they can help to make the informed choice and fulfil your requirements.

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