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| Change the mix over time |
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You could, if you wanted to, simply invest all your money in equities from the start of your investing period to the end. Although this would give you the greatest long-term growth potential it is a high-risk strategy as the markets could dip just before you need the money.
So most people will want to think about changing their portfolio over time. You may want to aim for strong growth in the early years of your investment and then as you get closer to needing your money lock in any gains you have made. Research has shown that many investors think that they do not need to, or have never thought about changing products or the asset allocation of their funds. Many people are concerned about reducing their risk exposure as they approach the time when they need money to achieve their goal How your timescale could affect your investment decisions |
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| You may like to make equities your emphasis, including both UK and international investments for the potential of long-term capital growth. |
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Your portfolio could become more conservative, to consolidate some of the gains you may have already made. |
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Your aim could now be to preserve any gains you have made. Lower-risk bond and cash investments could now become your emphasis. |
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These portfolios are for illustrative purposes only. Investor's decisions will depend on their own circumstances and so you may want to consult an adviser for guidance. |
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