As a cautious investor, you are willing to accept very small sporadic losses, with your primary focus being capital preservation but also generating slightly higher returns.
A guide to investing with little money
Slowly funnel your savings into investments
The truth is that you don’t need to have a large amount to start investing. It’s more beneficial to invest smaller amounts of money regularly and consistently rather than investing a large amount at once. By investing a small sum of money each month, you are less vulnerable to market fluctuations.
Diversify your assets
Mitigate your risk by building a diversified portfolio. This entails distributing your money across different asset classes, market sectors and countries. This will help level out any fluctuations in the market.
Invest for the long-term
Investing small amounts of money every month might seem insignificant, but over 20 or 30 years, you could have built a very significant amount of wealth. The best way to invest is for the long-term because the longer your hold your investment, the more time you have to power through the bad times until the market recovers.
The advantages and risks of investing in bonds
In simple terms, bonds are fixed-income investments issued by governments and corporations when they want to raise money, and they usually pay the buyer (you) a stated interest rate. Unlike stocks, bonds issued by companies give you no ownership rights, so, you don't necessarily benefit from the company's growth.
- Advantages
Bonds tend to rise and fall less dramatically than stocks, which means their prices tend to fluctuate less. Certain bonds can provide a level of income stability.
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Risks
Historically, bonds have provided lower long-term returns than stocks. The prices of bonds fall when interest rates go up. Long-term bonds particularly suffer from price fluctuations as interest rates rise and fall.
By diversifying your portfolio, you can curb the risks you would be taking by putting all your money in a single type of investment.
If you wish to speak to an expert to explore your opportunities, please contact our Investment Management team at +971 2 692 0609 or email us at fundmanagement@bankfab.com.
*Disclaimer: All the information / options provided by FAB are for the purposes of the customers’ informed decision making and will not be deemed as a specific advice or recommendation.Our Investment Products
You can connect with us at +971 2 692 0609 or email us at fundmanagement@bankfab.com.
What is your risk appetite for investment?
Take some time to assess your risk tolerance and choose from the list below based on where you believe you stand on the risk appetite scale.
Take some time to assess your risk tolerance and choose from the list below based on where you believe you stand on the risk appetite scale.
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