ISA investors have been warned to avoid newspaper and analyst tips when it comes to picking funds and shares to invest in.
With the ‘ISA season’ in full-flow, Jason Hollands has called for investors to take a more strategic approach:
“The main mistake people make is they take each year as a free-standing investment decision.”
“They get to this time and realise there are six weeks to the end of the tax year and see analysts tipping Japan or whatever in the newspapers. They look at the performance tables and see XYZ topping the charts, so they buy it.”
“They take each decision separately and don’t think about the overall strategy.”
“This means they often buy the stuff that has just done well rather than thinking about where the future opportunity lies.”
“Often it’s the markets that have had a tough time that rebound and do well again.”
News Source: Trustnet
You can find further information on areas to look out for when purchasing a fund as part of Investoo’s ‘Investing ina fund: how to‘ guide.
