What can you do when markets fluctuate?
While we can’t predict the future, historically every period of market volatility has stabilised and led to a recovery. So, here are some things to keep in mind when market movements are making you uncomfortable.
- Think long term, and remember that investing for more than five years will help to smooth out the effects of volatility on your overall investment performance.
- Consider your goals and objectives, and remind yourself of the reasons why you started investing.
- Ensure your investments are diversifiedThe act of spreading your investments over a range of different assets, sectors, and geographical regions. This way, if one of these falls in value, the value of your entire portfolio won’t fall with it. by spreading your money across a range of different sectors, geographic regions and assetAn asset is anything that holds value and which can be bought and sold freely. types.
Read more tips for market downturns
If you’ve invested in our Starting Options, your money has already been diversified across a range of different fundsFunds, also called ‘tracker funds’, are financial instruments that have been set up to match or ‘track’ the price of a market index. Investing in a fund lets you get exposure to different financial assets like shares and bonds, without having to buy them directly. in line with your riskThe potential for loss. Usually, but not always, higher risk assets can have the potential for higher returns. appetite. If you’ve customised your allocation, you might want to review your investments to make sure your risk level is still right for your personal circumstances and financial goals.
As always, if you have any questions, please get in touch with us via our in-app chat and the team will be happy to help.
