Investing - DIY or delegate?

Context: how much are you investing?

The more significant your investment is to you, the more you might want some guidance and expert input. For example, if you have a pension pot worth £150,000, you might want some help making sure that it’s invested the right way. On the other hand, if you’re investing £50 a month into a Stocks & Shares ISA (Individual Savings Account), you might feel fairly comfortable making your own decisions.

Capability: do you have the know-how?

Do you feel comfortable deciding which types of investments to choose? How do you make sure you don’t take too much risk? Can you tell a good investment from a bad one? There are lots of resources out there to help you do all of this.

Capacity: do you have the time?

Even if you decide you have the know-how, it’s important to make sure you have the time to look after your investments. You’ll need to spend time reviewing performance, researching options and, if necessary, moving your money around. If you don’t have the time to do this, you may run the risk of your investments not meeting your goals.

Control: do you want to make the decisions?

If you want to be in control of your investments, remember that you’re taking responsibility for the overall level of risk and potential returns. If you don’t feel comfortable taking this on, then doing it yourself probably isn’t for you.

Cost: do you want to save money?

One of the main reasons people go down the DIY route when it comes to investing is to have more direct control over where you money is invested. But keep in mind that it’s not always cheaper to build your own portfolio. Fund management companies often have massive buying power, which means they can negotiate lower charges and pass these savings on.

It could be cheaper overall to go into a fund with a mix of different types of investments. This means an investment professional will decide where to invest and how much risk to take rather than building your own portfolio from individual investments or funds.