{"id":14108,"date":"2021-07-27T16:36:14","date_gmt":"2021-07-27T15:36:14","guid":{"rendered":"https:\/\/www.ccpc.ie\/consumers\/?page_id=14108"},"modified":"2025-03-04T14:07:41","modified_gmt":"2025-03-04T14:07:41","slug":"thinking-of-investing","status":"publish","type":"page","link":"https:\/\/ccpc.inventise.ie\/consumers\/money\/investing\/thinking-of-investing\/","title":{"rendered":"Thinking of investing"},"content":{"rendered":"

Investments are financial products that you buy or put your money into with the aim of making a return or profit on your money. The general goal is to make enough return on your money that is greater than any charges, taxes or inflation.<\/p>\n

Being an investor also involves a degree of risk compared to other financial products, for example, a regular saving deposit account. The higher the return you are looking for on your money, the higher the risk you will need to take on. There are many different types of investments with different levels of risk attached to them, so it is important to choose an investment with a level of risk that you are comfortable with.<\/p>\n

If you are considering investing, make sure you think about getting financial advice<\/a> from a financial adviser who is independent from the bank<\/a>, stockbroker<\/a> etc. that is directly selling the investment. Our information will also help you consider what investment options are available to you and important factors you should consider before and after you invest.<\/p>\n

Before you invest, it is important that you know what type of investor you are, what type of investment you would be comfortable putting your money into and for how long. Take a few minutes to ask yourself these six questions:<\/p>\n

<\/p>\n

\n\t\t\t\t\t

\n\t\t\t\tWhat are your investment goals?\t\t\t<\/h3>\n\t\t\n\t\t
\n\t\t\t<\/p>\n

Are you investing for your retirement or your children\u2019s future or do you just want to build an investment portfolio?<\/p>\n

Do you want to receive:<\/p>\n

    \n
  • capital growth i.e. the fund to grow in value over time or<\/li>\n
  • a regular income, or<\/li>\n
  • both<\/li>\n<\/ul>\n

    \t\t<\/div>\n\n\t\t<\/p>\n

    \n\t\t\t\t\t

    \n\t\t\t\tWhat level of risk are you willing to take on?\t\t\t<\/h3>\n\t\t\n\t\t
    \n\t\t\t<\/p>\n

    Every investment has an element of risk but you need to be comfortable with the amount of risk you are taking on. Start by asking yourself the following questions:<\/p>\n

      \n
    1. Can you afford to lose money? How much can you afford to lose \u2013 what will happen if you lose all or some of your money after investing? The answer will depend on your personal circumstances, for example, you may be relying on your investment for your retirement or to pay for your children to go to college.<\/li>\n
    2. What is your attitude to risk? Nobody is happy with the idea of losing money, but we might also regret being too careful with long-term investments if we don\u2019t get the returns we need or expect. Your risk attitude is the level of risk that you are comfortable taking. This can be influenced by lots of factors including your personality, your past experiences investing money and experience of financial education. Your attitude to risk is sometimes called your risk appetite.<\/li>\n<\/ol>\n

      When you meet with a financial adviser, they should assess your attitude to risk and the importance of capital security to you. You should only be offered investment products in line with your risk profile.<\/p>\n

      A question you may be asked in order to assess your attitude towards risk could be:\u00a0What is your investment objective?<\/p>\n

        \n
      • To make high returns, regardless of risk?<\/li>\n
      • To make high returns, without too much risk to your capital?<\/li>\n
      • To make good returns, with little risk to your capital?<\/li>\n
      • To make returns which beat inflation, without significant risk to your capital?<\/li>\n
      • To protect your capital?<\/li>\n<\/ul>\n

        \t\t<\/div>\n\n\t\t<\/p>\n

        \n\t\t\t\t\t

        \n\t\t\t\tHow long do you want to invest your money for?\t\t\t<\/h3>\n\t\t\n\t\t
        \n\t\t\t<\/p>\n

        Generally, the longer you invest for, the greater the potential to earn a higher return. However, you need to consider if you will need access to the money during the term and how quickly you would be able to access your money<\/span>