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Principles for good investing

Investing is about making your money work harder for you. We believe it should be simple and rewarding.

We’ve developed a set of four fundamental principles to help make good investing easier for everyone. Whether you’re just getting started or are well on your way, these key investment ideas can help lay the groundwork by setting clear goals, developing a plan for the long term and sticking to it. While your personal situations and preferences may lead you down different paths to your goals, these tenets are here to keep us all on the right track.

1. Build on firm foundations

We believe investing is for the long term, so it makes sense to start with a firm financial foundation. Before you begin, there are a few things to consider.

Clear your debt
Cover your expenses
Get guidance
Maximise your pension savings

2. Start with a plan

Knowing what you want from your investments, and how you’re planning to get there, will help set the course for the rest of your investment choices.

Define your goals
Get tax-savvy
Decide how to manage your money
Set up a regular savings plan
Don’t delay

3. Manage risk

Knowing what level of risk you’re most comfortable with will help you choose a blend of assets that is right for you. Your attitude to risk is likely to change over time so be consistent but also flexible in your approach.

Keeping a cool head

4. Focus on the long term

Stock markets can be unpredictable, and your investments will perform differently over time. So, it’s important to keep the long term in mind and see past any short-term peaks and troughs.

Don't tinker

The value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

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