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Is now a good time to invest?

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, as there tends to be a lot of chatter when markets rise or fall. But, there’s a 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.

Trying to time the markets with any certainty is an impossible task. 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.

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 tie up, it’s possible to invest in smaller, affordable amounts on an ongoing basis.

Indeed, regular investing is a popular alternative for investors who understand the impossible task of timing the market. Regular investing 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, 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.

Man on top of the mountain

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

It’s said 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. We have our range of multi asset portfolio funds to help people with all kinds of risk appetites to invest. We have 5 multi asset funds MAPS 2- MAPS 6. MAPS 2 is geared toward the more conservative investor and MAPS 6 is for the riskier investor. Our MAPS funds are available through our savings and investments products. You can find out where you lie on the risk scale by taking our Investor Profile Quiz.

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.

Man sitting in an office

So, can downturns be managed?

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

New to investing?

Before deciding on any investment option, we suggest you read our article 5 reasons savers are losing out.

Warning: The value of your investment may go down as well as up.
Warning: These funds may be affected by changes in currency exchange rates.
Warning: If you invest in this product you may lose some or all of the money you invest.