Is Now A Good Time to Invest?

Now is as good as any to invest. The real truth is there is no ideal time to invest and that can be a challenge to get your head around if you’re new to investing. It's a common misconception that investing entails attempting to time the market. That you must be able to forecast the future in order to buy at low prices and sell at high prices. In reality, the reason the phrase about ‘time in the market, not time to market’ is so well worn, because investments need time and that can mean weathering a few storms along the way.

When it comes to investing, the most important consideration should be that you are comfortable with the fact that you’re committing your money longer-term, because nothing will help your investment more than room to grow. Keep in mind that past results are no guarantee of future results. Markets can go up and down, and there's always the possibility of getting back less than you put in.

Do I have to invest everything at once?

Lump sum investing works for some, but if you don’t have a chunk of cash that you can afford to leave alone for a good few years it’s possible to invest smaller, affordable amounts on an ongoing basis.

If you somehow understand the impossible task of timing the market, regular investing can be a popular alternative. It can help reduce the impact of market movements on your money (more commonly known as euro-cost averaging). If you invest regularly, for example once a month on pay day, it means that you are buying fewer shares for example when prices are higher and more shares when prices are lower. Long-term that can help you ‘average down’ the price you pay compared to investing all your money at a time when prices are higher.

How investing in multi-asset funds can help manage your risk?

It’s said that an investor can never truly understand their tolerance for risk until they’ve weathered a market downturn. It’s certainly something every investor should consider as stock market swings are an inevitable and normal part of investing. You should always know the risk involved in investing before you begin. You can lose some or all of your money.

Irish Life Investment Managers have a range of 5 multi asset portfolio funds to help people with all kinds of risk appetites to invest. MAPS 2, for example is geared toward the more conservative investor while MAPS 6 is for the riskier investor.

The good news is that there are options available that will allow you to invest and manage your exposure to risk.

Multi-asset funds are one way to help manage risk and are available to both lump sum and regular investors.

The benefits of multi-asset funds include:

1. Professional management – Professionally managed funds can give peace of mind of knowing there’s a team of experts continuously tracking performance, monitoring markets and managing your fund to achieve the best possible outcome for you.
2. Risk management and diversification – Multi asset funds can achieve a level of diversification and use risk management strategies that might not be possible if you were buying individual shares or property investments.
3. Scale – Pooling your investment with lots of other investors can create economies of scale and give you access to funds and opportunities that you wouldn’t necessarily be able to afford as a sole investor.

So, is this a good time to invest?

The key is making decisions that sit comfortably with your personal goals and risk appetite. Fund Managers plan for downturns and although there are no guarantees when investing, knowing that someone is always looking after your funds’ best interest can give you some peace of mind.