How to make the most from your investments

Before investing in equities, make sure you have enough money in cash for emergencies and everyday needs. If you don't, you could be forced to encash your longer-term investments when share prices are low rather than retain the freedom to pick the best moment.


Consider your financial needs. Do you need an income now? Can you wait for capital growth? Or - as is commonly the case - would you benefit from a mixture of both? Older people tend to have a greater need for investment income, for instance.

Ask yourself over what timescale are you prepared to invest - five, 10, 15, 20 or more years? First-time equity investors should start with a collective fund - probably a unit trust - with a medium to low-risk profile. Only after that should you consider the more risky, racier funds such as smaller companies or specialist trusts.

Spread your money between several fund management groups and avoid fashionable areas that are being touted by all and sundry.

Do not be swayed by brand names. Smaller, lesser-known management groups often do better than household names.

Treat performance rankings with care. If a fund has gone up 200 per cent in one year, ask yourself whether it is likely to achieve anything like that in the next.

Check under the bonnet of the fund. There are 2,000-odd funds, all of which have different aims and objectives. Some will be aggressively managed, investing in a smaller concentration of stocks. Others will aim for more of a spread. The more specialist funds will be prone to big performance swings - a winner one year, a loser the next.

Attend organised financial seminars in Cities where can learn more about the investment market.


Investing in art offers a great alternative to placing money in traditional investment opportunities, but there are some handy tips to follow. According to investinart.net, there is no substitute for taste when dealing with the art market. This means investing in good quality art that not only is worth money but also enhances your living space or working environment.

It is important to purchase what fits in your home or life style, because many pieces take time (a few decades) for them to increase in value. Also buying limited edition prints and not posters increases resale value, as first and last editions attract higher prices than other prints.

There are also tax breaks associated with art investment, with the UK offering breaks if pieces are allocated into a pension. Opportunities for purchases are abundant, although auction houses such as Christie's, Sotheby's or Bonhams & Brooks stock high quality pieces, with genuine descriptions and valuations.