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.
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