The start of each new year is a great time to sit down and take a look at how your investment portfolio is performing and where your money should be placed for the best possible returns over the next 12 months and beyond.
The sensible approach is to spread your cash around so that you can take advantage of more than one opportunity and improve your potential of making an overall gain, even if some investments don’t perform as well as expected in the shorter term.
A good example of a top investment strategy would be to consider a ULIP investment, as this offers you a combination of life protection along with the chance to enjoy potential profits with this savings-orientated Unit Linked insurance plan.
Here are some investment suggestions for 2020 and beyond.
Multiple investment choices
With a ULIP (Unit Linked Insurance Plan) you have the peace of mind that comes with life cover combined with maturity benefits as you will have the option to withdraw the fund value on maturity in installments.
You also have the ability to hone your investment strategy to your own preferences by choosing funds such as an Emerging Leaders Equity Fund or a Growth Plus Fund, for example.
Take the easy route
If you are an investing novice or anxious about getting things wrong you might want to consider investing in a combination of mutual funds or index funds.
Mutual funds and index funds are a basket of stocks and bonds that have either been put together by the fund manager or an index fund will track a market index.
Either way, it takes an element of the investment decisions out of your hands but allows you to take advantage of professional guidance and opinions.
Choose the right investment platform
Aside from getting your investment picks right in order to maximize returns, it is also sensible to talk to a professional about how and where to invest your money in the most tax-efficient way possible.
Start the year with a review of this aspect of your investing.
It is all very well staking your cash on a bundle of technology stocks, for instance, but if that sector takes a downturn your whole portfolio is going to underperform.
Check how diversified your portfolio is and try to spread your investments around a combination of sectors and opportunities to improve your chances of making a positive return across a range of different investment vehicles.
Regular monthly contributions work
One of the potential issues with investing a lump sum of money is the possibility of getting your timing wrong, meaning you could put your cash in at a time when the stock is overvalued and could fall back to a more attractive price.
When you make regular monthly contributions you stand to gain overall because you will be buying at different prices each month, averaging out to a better gain in the long run in many circumstances.
Make 2020 a great year for your money and consider talking to an investment professional to ensure that everything you are doing is keeping you on track for a better financial future.