About Us
At Investonmyown, we provide market insights to navigate complexities in the financial market. We are dedicated to the belief that fixed income is the cornerstone of a portfolio, providing enduring investment strategy. We combine deep analytical rigor with relevant market experience to provide market insights.
In today’s volatile market environment, we provide clarity, research and conviction needed to build resilient portfolios for capital preservation and steady income. We understand every basis point counts to safeguard your future investment. Check out our various articles and resources to get market insights and latest market updates across the globe.
How to Invest on my own?
Investing on my own means you manage your own portfolio, having full control over asset allocation – choosing from bonds, stocks to commodities.
Key steps would include: defining your financial goals and assessing risk tolerance, researching your investments, managing investment risks through diversification and monitoring & rebalancing.
• Defining financial objectives and risk: The first step to investing on your own requires deciding if you are investing for income or for long-term growth. Assessing your own risk tolerance level – how much risk you can take – matters as all investments carry risks. You need to have a solid financial plan to be successful in investing. How much are you going to invest for how long? What are your investment goals and risk tolerance level?
• Diversifying investment risk: It is safer to spread investments across different asset classes and sectors to diversify investment risk instead of investing in one asset class or one sector.
• Monitoring and rebalancing: You need to regularly review your portfolio to ensure your portfolio still aligns with your financial goal and risk tolerance.
Pros & Cons of Investing
on my own
Pros: You can have full control over investment decisions, lower costs without investment professional’s advisory fees, and build up the ability to learn more about financial market and investment. Managing your own money enables you to understand markets, risks, and taxes. Many people will find this empowering and enjoy the intellectual journey.
Cons: It requires time for research and high responsibility for losses from your investment, potentially having the risk of making decisions based on emotions. When markets drop, it is hard to stick to a plan alone. Sometimes, an advisor can provide discipline and a second opinion, especially in a volatile market.
Self-directing a portion of portfolio where you have expertise or interest will be a good start. If you are considering investing on your own, a good first step is to audit your own behavioural history – Did you consistently stick with a plan through market’s ups and downs? You can read up Understanding the Psychology of Investing from our Market Insight to understand more about various cognitive and emotional biases.
Core Principles
Investing on my own requires principles such as thinking long-term in years, controlling emotions by avoiding any panic-selling during market downturns and understanding risks. For example, higher potential returns come with higher risk represented by high volatility. Therefore, to have an opportunity to earn higher returns from investments, you have to be willing to accept a higher possibility of losing money.
Risk-averse investors generally prefer to avoid risks. Because of this, safe investments such as government bonds are in high demand. This high demand drives up the price of the investment, lowering potential return. Conversely, risky investments require much higher return to attract investors and convince them to take on that risk. This is effectively a premium paid to investors for bearing the uncertainty.
A young investor with a long time horizon can build a portfolio with high risk, high potential return assets such as stocks to growth wealth. An investor nearing retirement may prioritize preservation of the wealth by investing in safer lower return assets such as government bonds for stability over growth.
Talk to us
Have any questions or want to request for research? We are always open to talk about how we can help you.