Should I stay loyal to an investment?

Investments aren't for life

Shares and funds aren't for life. Increased competition in all market sectors has meant that many companies have had to adapt and move with the times. This uncertainty has effectively put an end to buying an investment for life - a blue chip company today, might not necessarily be a blue chip company tomorrow.

While companies may change, the reason for buying into them shouldn't. Whether you buy for income, capital growth or a balanced return, if the investment isn't doing the job - you might consider selling it.

Ensure you don't fall foul of any emotional attachment that can develop with investing. Just because you once worked for a company or regularly shop at a certain store doesn't necessarily mean the business is a good investment.

It's worth reviewing your investments regularly to ensure the companies you've invested in are still attractive.

Helpful tip

If you find a share or fund that offers the potential to perform better than one of your existing investments - consider switching. Holding on to poor performing investments simply prevents you from investing in more promising opportunities you may have identified.

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