5 Golden Rules to becoming a successful investor

1. Start Early

Start investing as young as possible even if it just a small amount. You won’t regret it!

2. Keep costs low

Keep your overall costs low! Here at Wealthsimple, all of our recommended portfolios have a total cost of less than 1% per year. According to research undertaken by Grant Thornton, the average UK investor pays a total cost of 2.56% per year!

3. Don’t pick stocks

Picking individual stocks is really difficult! Instead, it is better to invest in funds where you will get exposure to hundreds, if not thousands, of different companies.

4. Diversify

Choose different fixed interest and equity investments from across the world rather than sticking to one type of investment from one particular country. By doing this, you will be diversifying your investments (i.e. not putting all of your eggs in one basket), which will help to reduce the overall risk you are taking within the portfolio.

5. Drown out the noise.

Don’t make knee jerk reactions to things you see in the news. Instead, stick to the things you can control such a choosing a long term financial plan and paying low fees. Once a financial plan is in place, stick with it and don’t let your emotions take over when you hear things in the news!