The Principles of Successful Investing

Money doesn’t grow on trees – more’s the pity – so whether you want to buy a house, go traveling, give your children a decent education or save for your retirement, making sensible investments now is crucial if you’re planning for a brighter financial future.

Successful Investing

With the Bank of England interest rate sitting at an all-time low of 0.5 per cent, interest rates on savings account with your high street bank are painfully low, not even keeping pace with inflation!

So thinking outside the box could yield greater returns on your money. With this in mind, let’s take a look at the principles of successful investing and review some of the best investment services out there.

Your attitude to risk

Investing isn’t for everyone. Your money can go up as well as down, so before you even think about navigating the stock market you should consider your attitude to risk.

If you can stomach the high levels of volatility and risk, investing in individual company shares could be the right option for you. But it can be fraught with danger.

So if the thought of putting all your eggs in one basket gives you sleepless nights, investing in multiple assets could be more up your street. The latter not only allows you to build up a diverse investment portfolio but it’ll give you peace of mind by spreading the risk on your investments and the opportunity for benefiting from good long-term returns.

Your time, knowledge and effort

If you’re someone who loves monitoring the stock market and has plenty of time to navigate and understand the ever-fluctuating world of investments, building your own portfolio could be ideal for you.

If, however, you want to invest but don’t have the foggiest idea where to start – or have absolutely no interest in risk assessment and figures – choosing an investment manager to do the hard work for you could be a more appropriate solution.

There are many websites and services out there that’ll help you manage your money. Here are some of the best.

  1. Nutmeg

Nutmeg is a multi-award winning investment platform based in the UK that’ll build you a diverse investment portfolio based on your attitude to risk.

Simply answer a few basic questions and an experienced investment team will take time and care to invest your money in a way that’s tailored to you.

A team of investment expert works tirelessly to ensure your profile is constantly monitored and they adjust your portfolio as they identify investment opportunities, all at no extra cost beyond the single annual management fee.

Start a fund
Start a fund

You can invest your £15,000 stocks and shares ISA allowance with Nutmeg and the Nutmeg personal pension has also just launched.

Here’s what some of Nutmeg’s customers have said about the service:

  • “I’d given up ever finding professional support I could have faith in again until I came across Nutmeg.” Nilmini, senior manager
  • “I don’t see the value in independent financial advisers. I don’t have time to stay on top of the markets. So Nutmeg is the perfect solution.” @jilldesmo
  • “Found the most innovative investment business I have seen in years. Fantastic web interface and investing made simple.” — @jonathanwarren_
  • Find out more about Nutmeg in this video.

  1. Bestinvest

Bestinvest offers a range of investment services with transparent, competitive prices and operates as a private client investment advisor looking after over £4 billion of assets for more than 50,000 clients. Founded in 1986 by John Spiers, the company has enjoyed huge growth and success in recent years and is a top choice for anyone looking to build a diverse investment portfolio quickly, simply and cheaply.

Here’s a selection of their customer reviews:

  • “To me, picking the right fund is top importance, this is also where Bestinvest score as their top funds and research data is spot on, and it’s independent (not semi-independent as I’ve found elsewhere!). No rebate of annual charges, but that’s fine with me as research into picking the right fund and their web online service more than makes up for it. All in all, works for me!”
  • “Regular newsletters, informative webpage, personal advisor, discounted fund purchases.”
  • “I’ve have been with Bestinvest for a number of years and have been generally very happy. They give really good discounts when buying an ISA on the web, and last time I spoke to them about a fund their staff came across as really knowledgeable.
  • “Fast deals with little commission paid, can’t ask for more.”
  1. Covestor

Covestor works hard to match you with your perfect money manager – this is the sole essence of their business model. Offering access to a wide range of talented, experience and highly-vetted financial experts, they have become one of the industries’ most innovative and powerful investment marketplaces doing all they can to gain you high returns.

Here’s a selection of customer reviews:

  • “Helpful, great online investment management platform”
  • “Covestor is a very nice tool to keep track of your trades, in terms of returns as well as compare your track record with verified traders.”
  • “The company provides detailed bios of its managers before you subscribe or even sign up, so you know the types of investors they consider experts. You can see their top 5 stock holdings, overall, yearly and monthly performance as well as best and worst months. You will also be provided with commentary on the models by analysts and experts alike.”
  • “The site is well designed and being led by an experienced team of veterans that have seen success many times before. Alongside the ability to prove yourself to the trading world Covestor offers the ability to track other traders, all with a certified trade history instead of a simulator portfolio. The site boasts some amazing features that will keep members involved and in the know with who is hot and who’s not.

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