With the economic downturn and turmoil in the financial markets continuing, investors in Mayo should follow three simple steps when considering their investment strategy. This was the message from David Leydon, investment expert with Ireland’s largest and most trusted insurance company, Hibernian Aviva, who was speaking in Mayo this week.
Commenting on the current investment market issues, David Leydon, Financial Adviser of Hibernian Aviva at Market Square, Castlebar, said: “The turbulence in the financial markets has left many Mayo people feeling insecure about their finances and wondering how they should react. Each week we see a steady increase in the number of people coming to us to seek advice on what they should do and many people are clearly worried about the drops in the value of investments. To help look out for the needs of consumers generally we are giving Mayo investors three simple steps to help them understand what is happening.”
Keep fears in check
Investing in the stockmarket has historically offered investors the best way of generating long-term wealth. However, the dramatic falls witnessed in the stockmarket last year revealed that the road to inflation-beating returns is not always a smooth one. Mr Leydon advises Mayo investors: “Right now it is important for investors to remember that while things are changing rapidly, short-term periods of underperformance are nothing new and keeping fears in check for long-term investments is the best approach to smooth out these short-term fluctuations.
Diversify portfolio
Diversification is one of the key ways Mayo investors can enhance their risk-reward profile. “By balancing risk and return through diversification, Mayo investors can minimise the effect of market downturns in any one asset class and achieve steadier returns over the long term rather than ‘chasing winners’,” advised David.
Invest for the long term
Mayo consumers should always view financial planning and investments from the perspective of an investment horizon of at least five years. Investment decisions must also factor in the effect of market volatility which can result in significant upward and downward movement in investment values over the short term.
Despite the obvious benefits of long-term investing, some investors may not be able to shake their fear of the global stock markets. For cautious investors who do not want to invest in a stock market fund just yet, there are deposit-based funds, which offer the security of high interest bank deposits but the flexibility to move into investment funds when the investor is ready. For example, Hibernian Aviva’s Safe Haven Fund acts as a springboard for investments in the stock markets. Offering the security of a high interest deposit account (ECB+1% ) but total flexibility to take funds out of deposit to invest in equity and property markets, the Hibernian Aviva Safe Haven Fund is intended as a ‘stepping stone’ for new investors looking to ultimately invest in the markets for the medium to long rather than short-term period.
“The Hibernian Aviva Safe Haven Fund is ideal for Mayo investors who are too nervous to invest fully in stock markets in the present climate of market uncertainty. Ultimately the Hibernian Aviva Safe Haven Fund delivers peace of mind and prosperity for Mayo investors,” says Mr Leydon.
For further investment advice call into David Leydon at the Hibernian Aviva branch in Castlebar at Market Square, Castlebar or call the branch on 094 905 1500.
