Getting the balance right with your investments

Even the most experienced and successful fund managers make mistakes. It’s sometimes tough to confess that you got an investment decision wrong, but it’s also reassuring that people responsible for managing billions of pounds in assets are open enough to admit that they could have done better.

The most important measure of success is that an investment fund holds more winners than losers. No one can get it right all the time, or predict an unseen factor that could damage a company – economic conditions, a dynamic rival entering the market, or a poor decision that has a negative impact on the business can all take their toll.

However, if you have invested on the other side of that argument – a company that is suited to economic change, or enters the market with a strong competitive proposition, or a management team that makes a dynamic business decision – the outcome could be spectacular returns for shareholders.

Interestingly, fund managers who admit to making mistakes admit that their most common errors are losing their nerve and selling too soon when a share prices starts to slide, or delaying the purchase of a shareholding and missing out on strong performance.

Investing in an ISA, OEIC or investment trust, if done shrewdly, can offer a spread of risk and the chance to offset any losers with enough winners to ensure a good result overall. If you’re worried about getting the balance right, and you’re looking for investment advice in Chester, the experienced advisers here at Hartey Wealth Management will be delighted to help.

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