If you’re going to invest, it is vital to do your own research and consider whether an investment and its risk is right for you.
If buying individual company shares, check its fundamentals, read the company reports and look at the balance sheet. This requires time and effort but is essential to evaluate a company properly.
When buying investment trusts or funds, consider their objective (and whether they are sticking to it, otherwise they may come unstuck like Neil Woodford), the manager’s track record, the fund’s performance (although this may not be repeated, and the charges.
Always weigh up whether an active fund is worth buying instead of a cheaper tracker – does it justify its higher fees and can it do something the market can’t.
Here are some of our latest articles on funds, trusts and share ideas:
> Dividends are drying up, here’s where to find some
> Restore’s storage could prove profitable
> Shell shares: Time to buy, hold or sell?
> Where are the investment bargains as Britain goes back to work?