If you think you’ll be successful in investing without putting in the proper effort, think again. To get the most out of your investments, you need to take the time to research before making decisions, even if you work with a professional. At the end of the day, it’s your money and you are the one affected, so in truth, you really can’t afford to not be on top of your investments.
This does not constitute advice and advice should be sought in all instances before acting on it.
According to a new study from the Financial Services Compensation Scheme (FSCS) and the Financial Conduct Authority (FCA), 44% of UK adults with investments of between £100 and £50,000 wish they had spent more time researching their investment before making a decision.
What is the obstacle to researching before investing?
Many claim that they think investing is too complicated to wrap their head around or they are worried they’ll fall victim to a scam. There is some merit to this worry, as scammers often use “investment opportunities” with limited time frames to take advantage of unsuspecting investors. If this is one of your concerns, the FCA hosts a warning list on their site for you to confirm the legitimacy of the opportunity. You can also check to see if your investment is protected by the Financial Services Compensation Scheme (FSCS) to prevent lack of compensation in the event something happens to your provider. It’s important to remember that the FSCS does not provide protection against being scammed and that it is essential you perform your own research and remain vigilant against fraud.
Some more interesting findings from the study include:
- A small number (11%) of Britons have made a financial investment based on a friend’s recommendation
- 14% have chosen an investment because it was promoted by a celebrity or influencer on social media
- In the 18-24 year old age group, people were more likely to invest while watching TV/Streaming shows (13%), at the pub (11%), or coming back from a night out (7%) compared to those over 25
Protect yourself
You can protect yourself against scams and fraud by familarising yourself with the warning signs and following your intuition. If you are contacted unexpectedly or haven’t solicited contact or if you are feeling pressured to make a decision in a quick time frame, it’s best to err on the side of caution and do your independent checks before thinking about moving forward.
Get the most from your investments
The best way to keep your money protected is to work with a professional financial adviser. The experts at Dental & Medical Financial Services will help build you a personalised investment plan with recommendations you can trust. Stay in control of your investments with support from your trusted adviser, contact us today.