Checklist for before you embark on investing

Before embarking on investing, it is important to be clear about your investor profile, the main associated risks, any fees you should expect and some basic principles to consider. We have compiled a checklist to make sure you have everything covered.

Personal aspects

• • Investor profile
  • Investment horizon
  • Available assets
  • Values and preferences
  • Cognitive bias
  • Wealth planning

Main risks

• • Macroeconomic risks
  • Market risks
  • Price risks
  • Interest rate risks
  • Credit risks
  • Liquidity risks
  • Behavioural risks
  • Concentration risks
  • Risks associated with the cost of investment
  • Reputational risks
  • Inflation risks
  • etc.

Fees and charges

• • Application fees
  • Management fees
  • Transaction fees
  • Performance fees
  • Custody fees
  • Brokerage fees
  • etc.

A few principles to consider

• • Don’t put all your eggs in one basket
  • The importance of factor timing and compound interest
  • Understand the products before investing
  • Understand the risks
  • Find out about the investment product’s supplier
  • Keep up to date with market developments
  • Past performance is no guarantee of future performance.
  • Rationalise transactions to limit fees
  • Be wary of “hot new investments”
  • Avoid borrowing money to invest
  • Do not invest more than you can afford to lose
  • etc.

Expert involvement

• • Investment expert
  • Wealth planner

If you would like to know more about the different asset classes, visit our guide to investing on myLIFE. We hope you enjoy the read!