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What type of investment is best for you?

To benefit as much as possible from an investment, before you choose one or more products you must first have determined the form of investment that best suits your profile.

You may invest directly, for example, by buying stocks and shares through a stockbroker, or alternatively by participating in mutual funds.

Whatever the choice, it should reflect your experience, the way you perceive risk, your financial situation and the amount of time you have available to oversee your investment.

Investment risk

Every form of investment may perform different to what is initially expected due to the smaller or greater degree of risk associated with it. To minimize risk, the best thing to do is to diversify your portfolio.

Every form of investment may perform different to what is initially expected due to the smaller or greater degree of risk associated with it. To minimize risk, the best thing to do is to diversify your portfolio.

Your involvement in investment decisions

If you belong to the category of investors that prefer to make all of their investment decisions on their own, investments made directly to the stock market will probably suit you better. On the other hand, if you seek for assistance, in the cases of mutual funds, you may rely on the fund manager who will make all decisions on your behalf based on his experience and expertise.

Note, you don’t necessarily need to choose one form of investment only. You may invest a portion of your money in the stock market and another one in mutual funds, thereby achieving portfolio diversification.

Knowledge of the stock market

If you wish to invest in the stock market by yourself, you need to have in-depth knowledge of the companies whose shares you want to acquire. In other words:

  • What is the company’s potential?
  • What kind of background does it have?
  • What are the industrial trends in which the company operates?
  • At what levels is the share price? Is it overpriced or does it represent a good opportunity?

In addition, it very important that you are capable of analysing reports on financial results and balance sheet information.

If you do not have the time, the experience or the required information needed to answer the aformentioned questions, you should be cautious of your investment choices. A fund manager may do these evaluations for you, particularly when you invest in mutual funds.

Contact the HSBC Customer Service team to identify all available investment options.

UCITS DO NOT HAVE A GURANTEED RETURN AND PREVIOUS PERFORMANCE DOES NOT GUARANTEE FUTURE PERFORMANCE