What is the right investment strategy for me?

You've reached the point where you have some money to invest.  It hasn't come easily so now's the time to make sure you make the right choices to make your money grow.

Today, as an investor you're faced with a wide range of products and terms - equities, trusts, emerging markets, listed property, fixed interest, and on and on they go.

As well, you're bombarded with investment information - radio and television news reports, the financial papers, stories you've heard, well meaning friends offering advice and even details of their own investment plans.

And like all of us, what you want out of all this, is investment success. How do you know what is your best investment strategy?

Finding Your Best Investment Strategy

Investing in Last Year's Winners
The temptation for many people is to invest into what's doing well today, or over the last year. Take care.  This widely used strategy is not likely to be the best way to make your money grow.

Investing in Last Year's losers
A less common strategy is to select the worst performing sector. This strategy is only for the very brave as it means selling well performing investments and buying into investments with a recent history of non (or even negative) performance. It also may involve payment of capital gains tax and transaction fees that can make the returns much less exciting than they initially seem.

Diversified Investing
A better investment strategy is to have a diversified mix of cash, fixed interest, property and share investments that matches your own circumstances and priorities. Most likely these are quite unique, just like you. That's why what works well for a friend may no work for you, and one-size-fits-all investment plans can't offer the potential effectiveness of a strategy tailored precisely to your needs.

Your best investment strategy needs to take you into account how you like to live now and the lifestyle you want to enjoy in the future.

Three Key Questions

Answer these Key Investment Planning Questions to help you sort out the best investment strategy for you.

1. How much risk can you afford?
   Do you have enough financial security to allow your investment portfolio to include higher return, but less certain, elements?
   
   
2. Do you need income now from your investment, or is having your investment grow your priority?
   
   
3. How long is your investment for?
   Do you want to cash-in the investment in a few years or is the investment to protect your long-term future?

Do Talk to Your Financial Adviser

Talk through the key investment planning questions you have with your financial adviser. The answers will help identify your unique needs and circumstances, the right investment mix and tailored investment strategy for you.

An investment strategy planned to deliver what you need, when you need it. That will make you a winner today and tomorrow.

The above material contains comments of a general nature only and should not be relied upon as giving any specific or general investment or financial advice of any nature.

Reproduced with the kind permission of ING Funds Management Limited

© 2000 - 2006 Forsyte Consulting Pty Ltd unless otherwise stated.