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Investing fundamentals

Anyone can maintain an investment strategy when markets are strong and returns are high. If it ain't broke, don't fix it - right?

But volatile times are when discipline is more important than ever. It's all too easy to let short-term turbulence cloud the long term picture.

 

The following tips are your guide to surviving market volatility. Because some things don't change, no matter what's happening in the market.

 

Tip 1 - Diversification. Spread the risk. Investing across a range of asset sectors, both here and overseas, takes the guesswork out of picking the market.

 

Tip 2 - Time in vs timing the market. History shows that investors who stick with a well planned investment strategy for the long term tend to come out ahead. Time in the market is important for ensuring you don't miss out on market growth.

 

Tip 3 - Dollar cost averaging. Iron out the movements of investment markets by making regular investments. Regular investing gives your money the time it needs to grow. 

 

Tip 4 - Review your plan and seek financial advice. Your circumstances change. So do tax and superannuation laws. A financial adviser can help ensure your financial plan isn’t past its use-by date.


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