Recently, the UK’s Financial Conduct Authority produced the following helpful guidelines - 5 questions to ask before you invest
To help you make better decisions, take time to understand both the opportunities and risks of any investment you’re considering.
If you make smart decisions, investing can be rewarding. Beyond making your money work harder, simply making good decisions can be satisfying. Doing research and acting on it can be rewarding, and not just financially. After you’ve put a little effort into it, you can feel really good about investing, especially when things go well.
Making sure you know what you’re getting into and understanding both the opportunities and risks involved can help you make good decisions.
Trading apps on your phone. Ads on social media and YouTube. Tips from influencers and friends to get a piece of the action. The pressure to make quick decisions about investments has never been greater.
So, take all the time you need before deciding whether to go ahead with any potential investments. And, if you are investing for the long haul be prepared to invest through short-term ups and downs in the market, keeping your long-term goals in mind.
Here are 5 important questions to ask yourself before you invest.
Am I comfortable with the level of risk? Can I afford to lose my money?
Do I understand the investment and could I get my money out easily?
Are my investments regulated?
Am I protected if the investment provider or my adviser goes out of business?
Should I get financial advice?
Article taken from FCA Website 17.01.2024 - https://www.fca.org.uk/investsmart/5-questions-ask-you-invest