Here are our top five tips for being a better investor. A good read for those with an interest investing for income.

1. Synergy’s top 5 tips for
being a better investor
For those new to investing or those that are
looking to become better investors, here are our
top 5 tips for successful investing:

2. The value of investments can go down as well as up and
is not guaranteed. You may get back less than the
amount invested. Synergy Financial Products Limited
does not provide advice and these tips are not a
personal recommendation to invest. If you are unsure
about the suitability of an investment please seek
professional financial advice.
Risk warning

3. “The value of investments may go down as well as up”
is often quoted on websites offering investment
products and services. For the most part there is a
direct correlation between risk and return, meaning
that the riskier the investment the more likely the
chance of a higher return over the long term.
1.Understand your own risk
tolerance

4.  You should be prepared to invest for the long term,
which often means at least 5 years, but could be
longer depending on your personal objective and how
long the market takes to complete a full cycle.
 For those investing over a shorter term, this is often
likened to gambling, trying to makes gains by taking
specific company, sector or country bets. Whilst
those who try and time the market, by jumping in
and out at different points, often do more harm than
good to their investments.
2. Invest for the long term

5.  Costs can play a big part in achieving good
investment returns as the higher the cost you pay the
higher the drag on your investments.
 It is important to understand the full cost of your
investments including any initial investment charges,
on-going management fees, platform costs and
dealing costs, so you can assess how much you are
paying against the service received.
3. Understand the costs

6.  “Don’t place all your eggs in one basket” is a phrase
commonly used to explain diversification, which
means that you should look to build a diversified
investment portfolio and avoid just selecting one
investment to pin your hopes on.
 Diversification across different companies, sectors
and asset types can reduce the overall risk in your
investment portfolio.
4. Diversify

7.  Often overlooked, ‘rebalancing’ is selling those
investments that have performed well, whilst buying
investments that haven’t performed so well, to bring
your investments back to a more even weighting.
 Whilst rebalancing too frequently can have a negative
impact on your returns, due to dealing costs and
potential tax implications, good investors may want to
consider rebalancing periodically.
5. Rebalance

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Thanks for reading