Investing is a great way to see positive returns on your money and is a smart way to capitalise on your finances. Many people do it and with the appropriate knowledge and guidance, it can be an effective way to earn more. However, there are risks when it comes to investing and there are certain things to look out for. The main issue is rushing into your investment. Rushing your decision can lead to loose decision-making and buying into trends that may set you up for failure. Luckily, we’ve highlighted some of the trends you should look out for to avoid.
Get-Rich-quick schemes
They always sound great and ‘super easy’, but more times than most these ‘get-rich-quick’ schemes are the most common kinds of scams. Always be sceptical of investment opportunities that promise quick results with easy, no-risk premises. These tend to be scams and are ways to get people to pay money to an individual rather than a proper opportunity.
Hot investment trends
Just because an investment opportunity has a lot of buzz around it and has grown in popularity on the internet, does not mean that it’s the right fit for you. Choosing the right investment takes time and research, don’t just jump onto whatever is hot and trendy as this will change each day anyway and may not suit your knowledge.
Overdiversification
Some individuals may be wondering, is it a bad time to invest in stocks? Typically speaking, diversification is a good thing so there is never a truly bad time to invest in the stock market. However, when it comes to investments there is a thin line between giving yourself options and spreading yourself too thin, and you do not want to do the latter. Understand the risks and benefits of each investment before you add them to your portfolio.
Chasing returns
Higher returns always sound like the best investment option but there's much more to it than that. When you see these high return opportunities you must also take into consideration the risks as it’s likely they’ll be higher in this instance too. Find a balance that aligns with your goals and risk tolerance.
Undue influence
An investment choice should be something that you make on your own, for yourself, based on your research and knowledge. Of course, it’s great to have professional advice such as the advice you will get from Integritas Financial Planners about UK-based high-risk investments - however, the decision is yours to make. This is why you should avoid influence and coercion, especially from peers who do not have any prior knowledge or experience either.
Contact the team at Integritas today for investment advice you can count on.
Image Source: Canva
