Firstly, do you have sufficient Savings (cash or cash equivalent) for emergencies (6-12 times your monthly expenditure) and to cover your planned capital expenditure not normally met by income (Holidays, Car, House Alterations, Moving Home etc) over the next 3-5 years?

If not, you may want to consider building a savings pot first, before embarking on any investment journey.

If you do have sufficient savings, are surplus funds available for Investment and, if so, are you looking for growth, income or both? Can you afford to tie up for five years or more (ISA’s; Unit Trusts; Oeics; Investment Bonds etc).

Investments are not guaranteed to show a profit (if they are, there will usually be conditions attached – check the small print!) so you should ensure the investment chosen is appropriate to your attitude to risk.

What about any existing investments you hold?

You may well have felt “adventurous” or liked the idea of “emerging markets” when you originally invested but is the same still true? Maybe it is time for your investments to produce an income rather than growth? Regular reviews are essential for any portfolios long term value.

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