The first step towards a more effective investment strategy is deciding exactly what you are investing for. Your investment objectives are likely to change throughout your lifetime: a young person may have very different investment needs compared to a couple about to enter retirement. What’s more, there are many different investment ‘building blocks’ to choose from, including stocks and shares, property, fixed interest or bonds, cash, commodities or structured investments.

Before you make any investment decisions, you need to identify your key investment objectives:

• Income (high income, regular etc)
• Capital Growth
• Income and growth
• Ethical investment

Most people are aware that there is a close relationship between risk and reward, but getting the right balance between the two will depend on a number of factors, including your investment objectives, how long you want to invest for and the pattern of return you are comfortable in accepting. Whether you are ultimately a low, medium or high risk investor will depend on your attitude to a variety of issues which we can examine on an individual basis.