How to invest with confidence

Article written by Kellands Hale, our preferred independent advice firm.

This article is not intended to be financial advice to any individual. The views expressed are those of the author and Moneyfactscompare.co.uk does not endorse the content.

Whether you’re new to investing, or are an experienced investor, you may be overwhelmed by all the information and choices available to you. While investments pose a risk and should be carefully considered, it can be easy to overthink your decision with the internet at your fingertips.

This ‘analysis paralysis’ – a term describing a lack of action brought about by overthinking – can have financial consequences on your investment portfolio in the long-term. It's easy to procrastinate when you feel overwhelmed, but if you leave your wealth sitting as cash it’s likely to lose spending power against inflation as time goes by.

So, if you’re looking for ways to stop overthinking your investments, keep reading below for some tips on how to invest with confidence.

One detrimental effect of overthinking is that it can significantly slow your investment progress.

For instance, imagine you’ve decided to invest £10,000 in the stock market and you’re searching for medium-risk opportunities lasting five or more years.

Even with this information, there are many other factors you could consider, including recent market fluctuations or the past performance of your chosen fund. As all these factors start totalling up, you could find yourself reluctant to invest at all.

The truth is that past performance isn’t a reliable indicator of future performance, and you can never truly predict how your investments will perform.

While doing your research is important, when it comes down to it the key elements to be aware of are:

• The asset class(es) you wish to invest in
• How successfully these investments will diversify your portfolio (or whether you’re putting all your eggs in one basket)
• Whether the investment aligns with your tolerance for risk
• The environmental, social and governance (ESG) impact of the funds you choose
• Whether or not these investments are likely to push your wealth closer to your overall goals.

Ultimately, there’s no such thing as a perfect investment, so waiting around for the ideal circumstances is likely to be futile. Instead of wading through performance figures, you may find it more beneficial to review your goals and weigh up how the investments you’re considering will help to achieve them.

Managing an entire investment portfolio and doing all the research required can seem like a daunting task. If you do find yourself procrastinating when you feel overwhelmed, a Kellands financial planner could help get you back on track. In particular, a Kellands financial planner will:

• Listen carefully to your wealth goals, including your timeline, appetite for risk and growth targets
• Use years of experience to design an investment portfolio meeting those goals where possible
• Provide reassurance when you experience anxiety or doubts.

Using a goals-based approach, a Kellands financial planner can also:

• Review your portfolio as it is, and help you form an expansion strategy
• Perform due diligence on the funds and assets you’re interested in, and explain their findings in an accessible format
• Use top-rated industry software to review your portfolio’s performance on an ongoing basis
• Make changes to your portfolio where appropriate.

With the help of an expert financial planner from Kellands, you can replace ‘analysis paralysis’ with confidence and peace of mind. We’ll cut through the noise and help you stay informed without getting overwhelmed, allowing you to pursue new wealth opportunities more decisively.

Do you overthink your investments? Email us at hale@kelland.co.uk, or call 0161 929 8838.

Please note

This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

The Financial Conduct Authority does not regulate cashflow planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances. Kellands (Hale) Limited is authorised and regulated by the Financial Conduct Authority. FCA Firm Reference No. 193498