CHN Financial Consultancy believes that helping you understand your investments doesn’t need to give you a headache; with access to Independent Consultants who deal in this area on a regular basis, our collective experience could help you on the way to realising your investment ambitions.
Getting to know you:
It is important that we get a full picture of your financial circumstances and plans for the future, and will ask you about your current circumstances and your financial goals. You will then be asked to complete a short questionnaire which is designed to help us understand your attitude to risk.
We use the questionnaire to create a suggested “risk profile” based on your answers. We will discuss the results with you, and together decide if the risk profile is appropriate for you and your particular needs. This includes how much potential loss you are willing to accept in return for potential gains, as well as considering your capacity for loss according to your circumstances.
Is a return on an investment guaranteed?
It can be disheartening to hear friends talking about their investment gains while money you have safely stored away in a savings account doesn’t make you a particularly profitable (or discussion worthy) return, but before you take the decision to begin your investment journey, ask yourself a vital question: how would you feel if your investment were to drop in value?
Investments can fluctuate and it’s important to recognise that the performance of a fund in the past isn’t necessarily an indicator of strong performance in the future. The potential scenario that you could end up losing money (as well as making it), should be a major contributing factor in your decision to invest or not.
Where should I invest?
There are many types of investments available and choosing the right one for you is paramount to you achieving your financial “denouement” – this could be a shorter-term investment to pay for a world cruise for example, or a longer-term investment to help you pay for your child’s university studies.
To spread the risk, a fund could be an ideal place to start. Unit trusts and OIEC’S (Open-Ended Investment Companies) are examples of this. Your investment can be shared out amongst different companies in the fund, thus reducing the chances of you losing money and increasing the potential for a profit.
It’s extremely important that you weigh up both the pros and cons of investment; the risk factor involved is not something everyone is comfortable with, so it’s important you understand from the outset what your options are.
How CHN could help:
CHN take pride in offering quality independent advice. Contact us to arrange a no obligation review.