Managing investing risk during turbulent markets
A common mistake that some investors make is not diversifying their portfolio enough.To make sure investments are spread across different asset classes, it could contain a blend of equities, bonds, cash, property and others (such as commodities and gold) to benefit from their changing investment cycles.
But while diversification is indeed the key to managing risk, it’s not just about having a balanced portfolio. Much of the success of investing is down to timing.Volatility isn’t necessarily a bad thing, and there are sometimes opportunities in turbulent times. However, protecting your portfolio should absolutely be your first priority, and becoming a regular saver can be a simpler and less emotional way of investing through volatile markets.
Do you have potential for a long and successful investment strategy?
We all know that markets can go up and down. These movements can, at times, be quite extreme. Understandably, this can deter some people from investing. By understanding the importance of investing regularly over time, you will have opened the way to a long and successful investing strategy.
Read our factsheet to find out more about managing investing risk during turbulent markets.