Investing can be one of the most effective ways to grow your wealth over time. But if you're new to investing, or even if you've invested before, it's natural to have questions.

In our conversations with clients we find that similar things are on people’s minds. Worrying about taking too much risk, investing at the wrong time, or simply not knowing where to begin. They may be great at saving but taking the next step into the world of investing is proving difficult.

But the good news is that investing doesn't have to be complicated. It’s about having a clear financial plan and making informed decisions. To help you get started here are some of the most common investment questions we're asked, and the answers we give.

When should I start investing?

The simple answer is as soon as you're financially ready.

Before investing, it's important to have money set aside for emergencies and any short-term spending plans. Once you have that financial cushion in place, investing can help your money grow over the longer term.

One of the biggest advantages you have as an investor is time. The earlier you start, the more opportunity your investments have to benefit from long-term growth and the effects of compounding.

How much money do I need to start investing?

Many people believe you need a large lump sum to begin investing, but that's not always the case.

While investing a lump sum can be an excellent way to put your money to work, regular monthly investments can be just as effective. Investing smaller amounts consistently allows you to build wealth gradually over time while making investing part of your overall financial plan.

Is investing risky?

Every investment carries some level of risk. The value of investments can go down as well as up, and markets will naturally experience periods of volatility.

However, risk isn't something to avoid completely. It's something to understand and manage.

Your investment strategy should reflect your financial goals, your investment timeframe and, most importantly, your attitude to risk. Depending on what these are you will usually have a very different investment approach to someone else with different circumstances.

What should I invest in?

There isn't a single investment that's right for everyone. The most suitable investment will depend on your personal circumstances, your financial objectives, your timeframe and how comfortable you are with investment risk.

And remember that diversification is the key to a robust investment strategy. A well-diversified portfolio typically spreads investments across different asset classes, sectors and geographical regions. Diversification helps reduce reliance on the performance of any one investment and is an important part of managing risk over the long term.

What if the markets fall after I invest?

This is probably one of the biggest concerns people have, particularly when markets are making headlines. Market ups and downs are a normal part of investing. While short-term movements can be unsettling, successful investing is generally about staying focused on your long-term goals rather than reacting to day-to-day market fluctuations.

Trying to predict the perfect time to invest or move money in and out of markets is extremely difficult. A disciplined, long-term approach has historically proven to be a far more effective strategy than trying to time the market.

How often should I review my investments?

Investing isn't something you should simply set up and forget about.Your investments should be reviewed regularly to ensure they continue to reflect your goals and circumstances. Major life events such as changing jobs, starting a family, receiving an inheritance or approaching retirement may all mean it's time to review your investment strategy.

Regular reviews also help ensure your portfolio remains aligned with your risk profile and broader financial plan.

If you're thinking about investing for the first time, reviewing your existing portfolio or simply want to understand your options, book a financial review with us. We'll help you build an investment strategy that's designed around your goals, to give you confidence at every step.

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