5 Common Investment Mistakes – And How to Avoid Them

Starting your investment journey is exciting, but it can also be overwhelming. Many new investors make similar mistakes that can hinder their financial goals. Here’s a quick guide to help you avoid these pitfalls and build a stronger financial future.

1. Chasing Headlines

Jumping from one hot topic to another – crypto today, “cash is king” tomorrow – creates a disjointed strategy. Financial news is designed to grab attention, not help you make informed decisions.

• Tip: Stick to a long-term, diversified strategy and seek professional advice tailored to your circumstances.

2. Focusing on Fees Over Value

While minimising fees is important, the cheapest option isn’t always the best. A broader, globally diversified fund may have slightly higher fees but offers better long-term value than narrow investments like single-country indices.

• Tip: Balance cost with benefits like diversification, platform usability, and access to expert advice.

3. Relying Solely on Company Benefits

Many assume their employer-provided pension or insurance is enough. Often, these plans may not fully meet your needs or adapt as your circumstances change.

• Tip: Review your benefits and create a personal plan to supplement them, especially for retirement and critical illness cover.

4. Using Big Banks for Investments

Banks often prioritise their profits, offering higher-fee products and encouraging frequent fund switches. This can lead to unnecessary costs and a fragmented portfolio.

• Tip: Work with an adviser who aligns with your long-term goals.

5. Combining Insurance with Investments

Dual-purpose insurance products often result in high fees and lower returns. They may also have penalties for early withdrawal.

• Tip: Keep insurance and investments separate for better value and flexibility. Unless there are good reasons to combine them, such as for potential tax benefits.

Take Control of Your Financial Future

Mistakes are part of learning, but you don’t have to navigate your investment journey alone. At Oreana Private Wealth, our experienced advisers are here to guide you towards smarter financial decisions.

Contact us today to start building a sustainable and tailored investment strategy that works for you!