The world of investing has never been simple. In recent times we have had to deal with the banking crisis, European sovereign debt mountains (we preferred the wine lake!), quantitative easing and uprisings in North Africa and the Middle East. Just when things looked like they couldn’t get any worse, the terrible tragedy that has struck Japan and the nuclear disaster that is unfolding remind us that we should never tempt fate!

Source: flickr - M W Pinsent

So what is the honest investor to do? The truth is that there is no single investment strategy that is correct for all circumstances. Investors should be flexible and ready to embrace ‘active’ as well as ‘passive’ investment strategies, mix ‘buy and hold’ strategic positions with short-term ‘opportunistic’ investments. Most importantly, investors need to ensure diversification amongst asset classes in order to reduce risk. An investment portfolio requires continual review, analysis and adjustment and above all else, a calm approach. Understanding and mitigating tax is essential; HMRC offers reliefs and allowances that can significantly enhance investment returns, however careful planning is needed. You should also remember to “never let the tax tail wag the investment dog”.

 If you would like a free review of your investment strategy, why not talk to Fish Financial today?

 Note: the Financial Services Authority does not regulate trust or taxation advice.