Now is the time to make smart investment choices, says Liberty

Whether you are new to investing or a seasoned investor there are a couple of investments principles that you need to keep in mind before deciding on the right investment for you.

Andrew Warren, Executive of Product and Marketing at Liberty Life says, “When you start looking to invest your hard earned money, your first trigger is to look at investing with a company that has a reputable track record in the market place as well as registered with the Financial Services Board (FSB).

“It is also important to remember to ask as many questions as possible about the investment products as well as the company selling it to you. Speak to qualified and registered financial advisers to help you look at your own financial needs and spread your risk through diversifying your portfolio, especially in volatile markets.”

Wealth management houses such as Liberty have transparent investment processes and vehicles. Liberty is a well regulated and strictly governed organisation that adheres to strict statutory actuary, risk management and regulatory control policies and procedures.

Information on the performance of a company is available in the media and on request. Investors should always insist on transparency.

The responsibility rests with the investor to exercise good judgement when looking to invest. The Securities Services Act (SSA) provisions against price manipulation, publication of misleading statements and market manipulation do not apply to the trading of unlisted securities.

Here are some things to consider before investing your money:

· Make sure that you invest your money with a reputable organisation that is a licensed financial services provider.

· Understand the risks involved with the investment vehicle you are investing in – risk is a concept that has different meanings for different people, it is important for you to ascertain what level of risk you are comfortable with.

· In these times and investing in general, it is essential that your investment is aligned with your investment time horizon and liquidity needs.

· Decide up front whether you are investing for the short term and want a return on your investment in 18 months or less or whether you are a medium or long term investor and can withstand the volatility of the markets over a longer term.

· Volatility can potentially be reduced by diversification through asset allocation, with balance being achieved through the right asset mix of cash, bonds, property and equities.

· Understand what your expected return is going to be and if it seems too good to be true, it probably is.

· Avoid trying to beat the market by timing the market.

· Consider the fees you will be paying - exiting and re-entering the market can potentially lead to exorbitant costs.

· Ask questions and make sure that you have enough information to make the right investment decisions

· Don’t allow yourself to be influenced by other investors in an investment vehicle – rather make sure the investment is suitable to your needs.

The important thing to remember is that investing is a process. There are no get rich quick schemes. The best investment plan is the one that gives the investor the best return for the risk taken. An investment portfolio needs to be reviewed regularly in order to ensure that it still meets your changing needs and matches your risk profile over your life time.