While it’s all too easy to become consumed by Brexit in the current climate, it’s fair to surmise that that the UK’s pending exit from the European Union is having a profound impact on investors.
In fact, investors have pulled more than £10 billion from UK equity funds since the Brexit vote in June 2016, with the stock markets remaining distinctly out of favour across the nation.
This creates a daunting climate for new investors, particularly as the current level of volatility is likely to continue indefinitely. Here are some tips to help you on your way:
- Understand the Economic Climate
Determinism is a key trait for investors, as it enables them to avoid emotive decision making and recognise the underlying laws that govern change in the financial market.
However, this is not to say that the economic climate does not impact on specific financial markets, so it’s important that you remain in touch with the prevailing economic climate and ensure that it does not damage your investments over time.
In the current climate, for example, Brexit is clearly taking its toll on the financial markets and core assets such as equities and the British pound.
This must be factored into your considerations as an investor, as your portfolio must reflect the economic climate and the challenges that it poses.
- Seek out Expert Advice
If you want to build an investment portfolio from the ground up, you should perhaps start by seeking out financial advice from a recognised expert.
Companies such as Downing can provide this, as they offer everything from financial to inheritance tax planning to a diverse range of available investment products.
This type of detailed and specific advice can help you to create an actionable, long-term plan, and one that encompass lucrative assets and growing marketplaces.
We’d also recommend that you seek out such advice sooner rather than later, otherwise you may risk making ill-judged decisions that harm your portfolio.
- Consider the Value of Managed Portfolios
Many companies also offer managed portfolios, through which a diverse range of investments can be managed by seasoned wealth experts.
This is ideal for those who are new to the financial markets, as it helps to make a successful transition and create portfolios that are capable of delivering reliable returns.
This type of portfolio can often be structured around your existing appetite for risk, while it also helps to minimise your long-term risk.
By the same token, novice investors who look to trade through online brokers should start by utilising a demo account. This will provide them with access to a simulated but real-time marketplace, through which strategies can be tailored in an entirely risk-free environment.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.