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Author: blueboy Article source: http://www.articledeshboard.com/. Used with author's permission.
I am currently planning my investment strategy for 2008. These are interesting and challenging times for the wood-be investor and some would say that profits are going to be hard to find. For this reason I am going to be investing in a range of funds from different areas of the world, on a monthly basis. In this article I will be describing my reasons for doing this.
Pound cost averaging is where you benefit from paying premiums on a regular basis by purchasing units in an invest fund. When the unit price is high your monthly premium will only buy a few units, however when the unit price falls the premium buys more units. The whole basis of my and any investment strategy is that you should be aiming to invest over a long period and that share prices are likely to go higher over the longer term.
It just takes all the pressure away as you know that when the market falls you are actually buying more units and therefore will gain from it. In fact the more volatile the unit prices the more money you are likely to make by investing in this way.
For 2008 I am going to be investing in these areas; China, Japan, Emerging Markets and Asia. These are my personal preferences and should not be seen as a recommendation for other people as I am not qualified to offer this type of advice.
Japan is the most interesting of these areas. China, Asian and Emerging Markets have been performing very well in recent times whilst Japan has been lagging behind. This situation can not continue for too much longer and I think that a recovery is just around a corner.
All of the above funds could be seen as high risk however by investing twenty-five percent into each of them takes away some of this risk.
I actually think that my whole strategy above is quite low risk, investing on a monthly basis, into four different funds. I will let you know how I get on - wish me luck!
Steve Hill is a webmaster from Birmingham, he has interests in a number of websites including:
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