- When you know your needs, your goals and your risk tolerance.
- When you have done an investment plan, outweighing different types of products, and choosing the one that best suits you, among many alternatives.
- When you have checked all the charges involved.
- When you have got plenty of money in your cash savings account – enough to cover you for at least six months – and you want to see your money grow over the long term, then you should consider investing some of it.
The right savings or investments for you will depend on how happy you are taking risks and on your current finances and future goals.
1. Anything you put your money into should meet your goals and suit you.
2. No one can guarantee the performance of any investment. You may lose some or all of your money if something goes wrong.
3. The rate of return offered is not the only way to assess how risky an investment is.
4. ‘High return means high risk’ is a familiar rule of thumb. Some investments, even if they seem to offer relatively moderate returns, can be extremely risky.
5. Take your time and do your research before deciding what to invest in. Visit www.gemma.gov.mt or other independent financial education websites – including overseas.
6. You are taking a big risk if you put all your money into one investment. Spreading your money between different investment types (‘diversification’) reduces the risk of losing everything.
7. Do not invest if you do not understand the product.
8. Always seek professional advice from a licensed financial adviser before you decide to invest.
