Investing in the share market can be a great way to grow your wealth over the long term, but knowing
when to start can be challenging. This blog post addresses common questions on timing and risk
management for aspiring investors.
1. When is the ideal time to start investing?
The answer is simple as soon as possible. The power of compounding is essential for investment growth,
and the earlier you begin, the more time your investments have to grow. Starting early allows you to
weather short‐term market fluctuations and take advantage of long‐term trends, irrespective of current
2. Should I wait for a market downturn?
Timing the market perfectly is notoriously difficult, even for seasoned investors. Waiting for the perfect
moment can lead to missed out on potential gains. Instead, adopt a long‐term approach and invest
consistently over time. Dollar‐cost averaging can smooth out the impact of market volatility and reduce
3. How can I manage risk while investing?
Diversification is key to reducing risk. By spreading your investments across different companies,
sectors, and asset classes, you can mitigate the impact of a single investment’s poor performance.
Additionally staying informed about market trends and seeking advice from financial professionals can
help you make informed decisions and minimise risk.
By investing consistently, and managing risk effectively, you can potentially grow your wealth over time
through the power of compounding to achieve financial goals.