lifetime allowance abolished

When it comes to investing using a Financial Adviser can help you maximise your returns and take the correct amount of risk. Here are the top 5 reasons you should Diversify your investments. #1 Reduces the impact of market volatility A diversified portfolio minimises the overall risk associated with the portfolio. Since investment is made across different asset classes and sectors, the overall impact of market volatility comes down. Owning investments across different funds ensures that industry-specific and enterprise-specific risks are low. Thus, it reduces risks and generates higher returns in the long run. #2 Reduces the time spent in monitoring the portfolio A diversified portfolio is more stable because not all investments will perform badly at the same time. If you have invested only in equity shares, you will be spending a lot of time studying the market movement and analyzing your next step. Similarly, if you have invested solely into low-risk mutual funds, your all-time worry will be to find avenues to increase returns. With diversification, you will have to spend lesser time on the same and the portfolio will not require a lot of maintenance. #3 Helps seek advantage of different investment instruments By selecting different funds in different geographical locations, investors gain the benefit of not having all your eggs in one basket. By investing in fixed deposits, investors benefit from a fixed return and a low risk. Hence, diversification of the portfolio will balance the risk and return associated with different funds. Even if one fund does not perform well, the loss may be compensated by the profits made from other funds. #4 Helps achieve long-term investment plans It is important for the investor to invest indifferent high-performing sectors. If the market volatility has a positive impact on stocks, the investor will be able to generate higher returns on them. #5 Helps keep the capital safe Not every investor is ready to play a risky game. Investors who are on the verge of retirement or have just started investing prefer stability in their portfolio and diversification ensures the protection of their savings. Diversification allows investors to achieve their goals while maintaining the investment risk at a minimum. It is also a method of playing safe in the volatile market.

Lifetime Allowance when does it apply, how much is it?