The longer your investment timeframe, the more the value of your investments can compound upwards and grow. Regularly adding to investments can greatly improve the results. If you reinvest your returns or constantly drip feed more money into your investments you will see the highest growth.
To get the most out of your investments follow these steps:
Track your investments
Review your investments at least once a year using the various reports investment providers publish. Even if you have an investment adviser, it’s important you read them yourself. Our ways to invest pages explain the reports you should receive.
Don’t panic if your investment value falls
This is a normal part of investing. Reacting by making changes when the value is low will often make things worse. Keep your end goal in mind. If your goal is mid-term to long-term, it’s likely you’ll have enough time for your investment to regain value.
You may want to get advice from a financial adviser.
Keep an eye out for warning signs
While there’s no guaranteed way to spot losses in advance, there are warning signs that an investment may be heading downhill.
Your investment provider (including any company you have purchased bonds in) may delay or stop making payments due to you. Contact them immediately to find out what is happening.
While occasional under-performance is normal, if your investment is consistently underperforming, you should compare its return to other similar investments.
Mistakes, delays, audit qualifications and controversy over accounts can all be warning signs. Accounting rules can be complex and genuine errors or differences in views do occur, but repeated issues may indicate deeper problems. Read more about audits.
Director and senior management in-fighting, resignations, breaches of the law or unethical conduct can be warning signs. Changes in management may be necessary, but it could distract the management's attention from running the business.
Over-promising and under-delivering
While even the best managers can make mistakes, lack of communication and falling service standards may point to something being seriously wrong.