The National - News



Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

Choose the right level of risk. Don’t gamble by investing in get-rich-quick schemes or high-risk plays. Don’t play it too safe, either, by leaving long-term savings in cash.

Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

Keep charges low. The biggest drag on investment performanc­e is all the charges you pay to advisers and active fund managers.

Keep it simple. Complexity is your enemy. You can build a balanced, diversifie­d portfolio with just a handful of ETFs.

Forget timing the market. Nobody knows where share prices will go next, so don’t try to second-guess them.

Stick with it. Do not sell up in a market crash. Use the opportunit­y to invest more at the lower price.

Use index funds. Index funds are fantastic tools to diversify across stocks. For diversific­ation at a low cost, there’s no better way.

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