No 31

7 Rules of Investing


The world of investing can be complex and challenging one, but is also a key to securing your financial situation in the future. This guide helps you to make clever financial decisions.

1. Define clear goals!

It is essential to define clear financial goals before you invest. Whether you want to save money for your retirement, to buy your own home, or to reduce your debts, your goals can significantly influence your investment strategy. Define your goals and available funds clearly!

2. Be aware of your risk appetite!

Work out how much risk you wish and are able to have. Remember that there are always risks involved in investments, and that profits are not guaranteed. The higher the prospects for returns are, the greater the risk!

3. Be sure to diversify!

Diversification is a basic principle, by which you distribute your money among different investment classes or assets, in order to spread your risk. This approach allows you to offset losses sustained in one area by gains in another area.

4. Compare the costs!

Compare the charges and costs that arise in relation to your investments. High costs may considerably reduce your returns. Compare several serious providers.

6. Seek professional advice!

It is advisable to seek assistance from a financial adviser before taking far-reaching financial decisions. Never overestimate your own knowledge and skills about the capital market. Do not allow yourself to be pushed into concluding a contract, and always ask for a copy of your investment profile and of the minutes of the consultation.

5. Pick who you do business with carefully!

Check whether your financial service provider has the necessary authorisation to so do. Consult our Company Database andthe Securities Brokers and Tied Agents Query (Vermittler Abfrage) as well as the Gewerbeinformationssystem Austria(GISA). Do not fall for unsolicited phone calls that try to push you into concluding a transaction.

7. Improve your financial knowledge!

Keep up-to-date about the latest developments in financial markets and extend your financial knowledge. Ensure that you understand products before you invest and look for reliable sources of information. Remain realistic and be critical!

Investment classes:
various assets in which you may invest – such as shares, bonds, investment funds, immovable property, commodities etc.

Company database:
register of all companies permitted to offer financial services requiring a licence in Austria.

Securities Brokers and Tied Agents Query:
Register of all intermediaries allowed to act on behalf of investment firms

GISA Register: contains information about all commercial undertakings and their activities
A-Z of Finance:

You can find important basic
information on the FMA website in the A to Z of Finance section on spotting financial fraudsters