The investment world has never appeared more complex and daunting. New financial products are regularly pushed at investors by salesmen and often without regard to personal circumstance. The media regularly bombards investors with notoriously short focussed ‘glee’ or ‘panic’ stories. Then there are the unfortunate investors who’ve found themselves the victim of financial fraud.
It appears a discouraging landscape to navigate, yet it’s really quite simple. If you acknowledge markets are unpredictable, but their rewards can be captured; if you don’t fall prey media distraction; and if you don’t expose yourself to unproven methods, it is possible to have a successful investment experience.
At FYG we don’t take unnecessary risks and we don’t adopt unproven strategies – we focus on what drives investment returns. When investing for clients we focus on these key principles:
- Markets work
- Risk and reward are related
- Diversification reduces Investment Risk
- Asset Allocation determines performance
- Maintaining discipline