There is no doubt that one of the best ways of building your wealth is through investment, but this is not something you dive into without doing some research first. According to Ido Fishman, investing can give you greater gains as opposed to saving because you are taking a risk, which means your investment can go up as well as down. If you want better returns and keep your money safe, you can follow this guide that Ido Fishman has provided. Let’s take a look:

Decide on a goal first

The first thing you need to do is to have a goal in mind, as this can help you structure your investments. If you have a goal to achieve in the short-term, investment expert Ido Fishman suggests that you opt for lower-risk investments because you cannot afford a lot of volatility. Only those who have long-term goals can take higher risks because they have the option of riding out the volatility. Having a goal in mind can help you choose the most appropriate investments.

Take advantage of tax wrappers

The purpose of tax wrappers is to protect your investments from taxes, as these could eat up your returns. Individual Savings Accounts (Isas) and pensions are the most common tax wrappers. There are different types of Isa that can be found, such as lifetime Isas, cash Isas and more. You will be able to get tax relief on your investments in this way, so Ido Fishman recommends that you take advantage of them.

Keep realistic expectations

When you decide to invest, it is a must for you to have realistic expectations. According to experts like Ido Fishman, most people, especially young investors, tend to have very unrealistic expectations. They believe that getting 100% returns annually is reasonable to expect, but most investments will deliver you returns below this rate. Aiming high is a good thing, but you should ensure that your spending does not depend on achieving such high returns on your investments.

Be on the lookout for charges

One of the most important things that Ido Fishman suggests you remember is that there will be a cost associated with investment. Nothing comes for free, does it? You will have to pay charges on your investment as well and the amount and type of fee will depend on what platform you are using. For instance, there can be trading fees, management fees as well as performance fees. You should bear in mind that these can take a significant portion of your profits over time, so they should always be taken into account beforehand so you are prepared.

Beware of hot trends and scams

While investing for the first time can be extremely exciting, Ido Fishman says that you should not get swept up and jump onto the latest bandwagon. Bitcoin is an excellent example, as the cryptocurrency is undoubtedly popular, but is also highly volatile. The market itself is a hotbed of scams and this means that you have to exercise caution at every step of the way. Bitcoin and other cryptocurrencies have delivered high profits, but many have suffered massive losses as well and you need to be prepared for all outcomes. There is no investment that can be without risk and any option guaranteeing returns should be avoided.

Diversify

The key to successful investing, as experts like Ido Fishman will tell you, is to not put all your eggs in one basket. Diversifying is how you spread out your risks because this can reduce your exposure to a specific company, industry, sector, or even a geographic location. One of the best ways to accomplish this goal is to invest in a fund, as they comprise of dozens of different holdings, which can reduce the impact of some poor performance on your portfolio as a whole.

Follow this guide from Ido Fishman and you will be able to make successful and profitable investments.