Planning one's future depends on what goals are set and over what time-frame they are meant to be achieved. Investing at an early stage is the key to meet any future long-term goals, and best results are achieved when investors contribute on a regular basis. Most of us wish to be able to save more money. A common dilemma is how can we do this, and how do we get started. The key to saving is to spend what you have left after investing and not invest what you have left after spending.
The Valletta Fund Management Monthly Investment Plan (“MIP”) provides you with an excellent way to start planning for your future. By allocating a small amount of your salary every month, you can easily start an MIP. Whether you are a post-graduate starting your career and looking for a way to start investing, or perhaps you have been earning a regular salary for a while and wish to discipline yourself to develop a savings habit, an MIP may fit your objective.
By choosing to invest a sum of money every month in an investment fund of your choice, you will minimise the downside to the markets over the years by purchasing units at different prices. This strategy of price averaging does not try to time markets; instead it reduces the risk of investing a large amount, at an unfavourable time, by spreading your investments over a period of months, years or even decades. Valletta Fund Management with approximately €800 million in funds under management as at the end of May 2015, provides you with the flexibility to increase or decrease to a minimum of €50 (or US$50 or £30), suspend or cancel your monthly contribution as your financial circumstances may necessitate from time to time.
Investing through a Monthly Investment Plan also offers an element of flexibility in view that most investment funds are not closed-ended and have no maturity date, trade daily and are accessible within a short time frame. You can also keep your plan for as long as you wish. Whilst you should aim to save for the long-term, you can withdraw money within a short-period of time.
There are various investment funds which one can access through a Monthly Investment Plan, ranging from those with the objective of generating Income, Income and Growth and Growth. The range of investment funds managed by Valletta Fund Management invest in the domestic and international markets across the main asset classes. These Funds are available in all the major currencies and have different risk profiles to meet the investment requirements of all types of investors.
Market timing is one of the biggest dilemmas investors face. Market timing is a strategy that attempts to predict future market movements using fundamental and technical analysis. Jumping in and out of markets on a regular basis not only requires constant monitoring of daily events but also requires the skill to act on such events. The message here is that trying to predict market movements is difficult, if not impossible, so it’s best to avoid it.
A number of specialist investment funds managed by Valletta Fund Management are sub-managed by Insight Investment Management Limited, one of UK’s largest asset managers and a subsidiary of Bank of New York Mellon. Other funds are sub-managed by Waverton Investment Management Limited, a boutique asset manager and winner of the Private Asset Managers Award for 2015. This means that your MIP, will be accessing a professionally managed investment fund.
It is important that before taking any investment decisions, you discuss your financial situation and investment goals with a licensed financial advisor to ensure that your investment is in line with your objective and risk appetite.
For further information on the full range of Valletta Fund Management’s funds please click here.