10 things to remember during market downturns

What goes up must come down and it is no different with investment markets. Here are 10 key reminders to help you stick to your investment strategy when things go bad. 1. Stick with your long-term plan Short-term market fluctuations should not be a concern when you have a sound financial plan -- one that includes a well-diversified portfolio to meet investment objectives in an appropriate time horizon. 2. Look beyond today's market No-one can predict what the market will do and when, so think ...

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Risk versus return

When it comes to investing there are two main factors to consider: the risk you are prepared to take, and the return you are willing to accept. Risk is the likelihood that your investment will fluctuate in value and the earnings may be less than you expect, possibly even negative. Return is the rate by which your investment changes. Risk and return go hand in hand and the relationship between them is something you need to consider. Over the longer term, higher returns are usually ...

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Managed funds

A managed fund is a professionally managed fund where your money is pooled with other investors' and managed by a specialist fund manager. There are many advantages to a managed fund. These include: Greater buying power - greater access By pooling investors' money, a managed fund increases its buying power to invest in many different assets and asset classes: ones that most individuals may not be able to access on their own unless they have a large sum to invest. Diversification By spreading ...

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Taking the mystery out of the jargon

With the increased volatility in share markets around the world at the moment, and all the related press reports, we thought it would be useful to provide an explanation of some financial terms in the context of the current market conditions. A bear market is a market in which stocks are currently falling in value. It's arguable exactly how much a market has to fall in order to be considered a bear market, but 10% is typically seen as a good figure. The opposite of a bear market is a bull ...

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