|
Imagine the scenario where you have some savings
available, the market is doing well and you decide to buy.
However, no sooner do you buy than the stock market falls
and your capital losses value. What do you do, sell and cut
your losses or stick it out? If you are unsure we can help by
providing you with the information that you need.
Generally the best time to place capital is when the markets are down, but how do you know when the markets are down? If you are not sure what you are doing, trying to second guess the markets can be incredibly stressful. So how can you place capital for the medium to long term without exposing it to risk in the short term?
Many experts believe that it is better to place a set amount of capital on a regular basis, regardless of what's happening in the world's market, rather than move it
in and out of the markets. This allows the overall capital to benefit from cost
price averaging.
By being in the market regardless of whether it is a bull or bear, you can take full advantage of the long term benefits associated with the ownership of securities. Cost price averaging works with most types of security and some people use the approach to buy individual stocks and bonds. The cost of buying small amounts of stocks and bonds is relatively high and may limit the overall spread of asset risk, making the creation of a diversified portfolio difficult for the average person. Therefore, many people place capital in insurance linked funds which offer diversification and professional management at a more reasonable cost.
Personalised insurance bonds offer many advantages within the single financial structure, including the ability to hold a range of pooled funds, including fixed
interest securities.
The single structure allows you to change funds within the bond at any time, or to set up regular transfers into other funds if required. This allows you, regardless of market conditions to place capital in the market with the minimum amount of stress and administration, and spread your investment over different risk levels.
Fintec can help place funds according to your individual risk profile and make sure it is in the right environment and is able to change with your changing requirements. |
