Some do’s and don’ts for investments

Out of all the advice that you may receive when considering an “investment opportunity” one of the easiest is simply: – “If it sounds too good to be true, it probably is!”

THE GOLDEN RULE has to be “Never invest more than you can afford to lose”

If you feel that you are being rushed into something, then you probably are – and at that point a conclusion may be that they don’t want you to look too closely – It works – don’t look closely – walk away – Take your time always – the legitimate dealer or broker wants you to be certain before investing.

We are all aware of course that life is never that simple or easy to predict so at ECS we have drawn up a basic list of what to do – or not do.

• Do not invest in products, especially financial products unless you fully understand their nature and the full extent of your risk exposure.
• Research and always seek professional advice to ascertain your risk exposure.
• Ensure that your investment is suitable for you in your present financial circumstances.
• Understand that all investment carries some risk and markets fall as well as rise.
• Remember that the product may be sound but your vehicle (perhaps an investment company) may equally perform badly. You may not get out as much as you put in.
• Remember that past performance guides bear no relationship to future performance.
• Check the company and / or investment type with a trusted source such as FCA (Financial Conduct Authority).
• Check out the “FCA warning lists” – https://www.fca.org.uk/scamsmart/warning-list
• A good company may well conduct due diligence on you before you invest – do the same with them.
• Make sure you use a trusted and independent professional advisor – it could cost you a little – no doing so, could cost you a lot.
• Don’t simply trust a scheme because it seems to have a law firm giving it credibility.

I am sure that there are lots of other tips – a good investment tends (more often than not) to be longer term which irons out market fluctuations and there are great opportunities around – you just need to know that it is the one you are being offered.

Still in doubt – then don’t!