Looking for a more adventurous investment opportunity? This may be just the thing.
My regular blog readers will know I am very much a buy and hold, medium term investor. But that does not stop me from investing a reasonable amount of money into some more adventurous funds, from time to time, where I expect and can cope with greater volatility than with my more cautious funds.
Just be absolutely sure you have the nerve to sit through the volatility and wait for the time to take profits.
In this situation I encourage clients to decide at the outset when they are going to start taking profits and stick to it. For example you may decide to start taking profits at a 20% gain and each 10% thereafter. Also put in place a “stop loss” so that you won’t chase the price all the way up and keep it all the way down. For example you may decide to sell the entire holding if at any time it falls 10% from the previous high.
This type of exercise gets even more interesting when you have decided in advance how you are going to spend the profits. Big holiday, new car, meals out – you decide. After all, why take extra risk if you are not going to enjoy the rewards?
Don’t get excited and go overboard. Don’t invest more than 10% of your total savings/investments, and be prepared to pay attention. This is not something to buy and forget.
If you would like to know more about this particular fund click here.
I am not a regulated financial adviser so nothing I say should be interpreted as personal advice (see the important information below). However, if you would like some guidance in putting your own personal investment strategy together just text “investment strategy” to 07770 575122 and I will get back to you.
IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122
