Who is this blog for?
This blog offers unbiased information to Private Investors, Financial Advisors, Financial Planners, Investment Managers, Wealth Managers, Family Offices and anyone who help individuals or organisations to meet their financial goals.
What solutions can I get here?
Our readers will be able to benefit from our collection of content-rich ideas to make informed financial decisions.
Can I trust the contents of this blog?
All the data points and statistics mentioned in this blog are from dependable websites, academic research and professional associations. Some examples of reputable sources, but not limited to, are Wall Street Journal, Financial Times, Financial Analysts Journal, Journal of Financial Planning, Journal of Finance, Morningstar, Bloomberg and Thomson Reuters.
How is this blog different from other financial blogs?
Increased complexity of financial instruments can make even experts struggle to understand what they are selling, and this makes it difficult for potential customers to comprehend. Also, false information is readily available everywhere.
This blog is my attempt to simplify the complexities and provide accurate information in general investing. These are my existing knowledge gained over the last decade working in the city of London. Nothing in here is endorsed or promoted for any other organisations. It is an introduction to simple, straight-forward and unbiased analysis on investing that is in the best interest of the readers. Topics range from economics, investment management, financial planning, risk management and retirement strategies.
Is investing right for me?
It is all about your personal circumstances. If you have enough money in your cash savings account to cover you for at least one year, then you consider investing some of it. A lot will depend on your current finances and future goals.
Where should I invest to get a good return?
It all depends as to when you need the money back. Different time frames will affect the types of risks you can take on. For example, if you need your money back within next couple of years, then you should not invest in shares or funds as their value will go up or down and hurt your portfolio. Invest in bonds or Cash ISA. However, if you are saving for your pension in 7-10 years, then you should invest in shares. You can ignore short term falls and focus on long term gains. It will allow for more savings when the general level of prices of goods and services goes up.
What are asset classes?
An asset class is a broad group of financial instruments (a monetary contract between parties) that have similar financial characteristics (i.e. Income, Expenditure, recurrent payments etc.)
There are four different kinds of assets classes:
- Cash or Money Market or Cash Equivalent
- Fixed Interest or Bonds or Fixed Income
- Property or Real Estate or other tangible Assets
- Shares or Stocks or Equities
What are the risks involved in investing?
There is no such thing as ‘No-Risk’ Investment. You are always taking some form of risk when you invest. The level of risk can differ, but there will still be some form of risk involved. Money in your savings account will lose its value over time due to rising costs of other goods and services. Money invested in the stock market can lose its value if the market falls. Money invested in bonds has the risk of losing all its value if the issuing body fails (defaults). It is usually a good idea to spread your risk over different asset classes (i.e. Shares, Bonds, Cash ISA).
What is the best type of Short Term (less than 2 years) investment?
Short term investments are perfect for individuals who have a low tolerance for risk. The possibility of losing money is the least and are generally considered the safest type of investment. The central feature of short term investment should be as follows:
- Highly liquid – Money can be used immediately
- FSCS Insured – As of January 2017, FSCS protects first £85,000 of your savings or £170,000 of your savings if held in a joint account
- Potential Return: less than 1.5% per annum as of January 2019.
Type of Investment: Savings Account, Cash ISA
What are the best books on investing?
Whether you are an experienced fund manager or a newbie who is making their first investment, it always pays to have a good understanding of the rules of investing. The following are some of the best books on investing that has stood the test of time:
- The Essays of Warren Buffet
- Margin of Safety – Seth A. Klarman
- Principles – Ray Dalio
- The Most Important Thing: Uncommon Sense of the Thoughtful Investor – Howard Marks
- Security Analysis – Benjamin Graham
- Wealth of Nations – Adam Smith
What are the most common investing mistakes?
Mistakes do happen. Same is true in investing. The following are the common mistakes investors make:
- Having an emotional attachment to a share (i.e. Company)
- Placing too much importance on past performance of a strategy
- Holding on to loss-making investment
- Failing to hold on to winning investment
- Buying near the top
- Listening to friends and family and hoping to replicate their investment
- Eager to invest without enough research