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How to invest safely

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Islanders are being warned about the risks of buying into rogue investments.

More and more people are falling into the trap of investing their life-savings into scams.

But today Jersey Financial Services Commission have launched a campaign to help raise awareness of the issue.

They have offered the following advice:

Are you looking after your own best interests?

If you rely on financial advice to make investment decisions, is the advice that you are receiving appropriate, reliable and from a credible source?

  • Your investment choices must be well-informed and relative to your wealth.
  • You must ensure you fully understand the risks and rewards of the product.
  • You should diversify your investments to help spread risk.
  • Putting all your money in one investment is highly risky.
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Every investment carries risk

  • Avoid putting all your eggs in one basket.
  • Be wary of promises of a high rate return with apparently little or no risk.
  • All investments carry some degree of risk.
  • Greater returns mean greater risk.

Do your research

Always research the person and the company selling you the investment, even if you know them personally and believe them to be trustworthy.

You may have developed a good relationship but regard this as a business transaction and always ask yourself whether they are acting in your best interests – not their own.

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Never be rushed

  • Always be aware of pushy sales tactics.
  • A professional adviser should never pressure you into making a decision.
  • If you are not given enough time, steer clear.

Don't be afraid to ask questions

You are the client - ask questions and make sure you get the answers so you are fully comfortable with your decision; how long will you be tied in for? Could you lose all your money?

And is it too good to be true?

It’s an old adage but if it sounds too good to be true, then it usually is.

Remember it’s your money. Never be afraid or embarrassed to ask questions or complain.

For more guidance and to check whether a firm or adviser is licensed please visit the Jersey Financial Services Commission website.

If you have concerns about your investments or advice you've been given, you should contact the provider.

If you're unhappy with the response, you can contact the Channel Islands Financial Ombusman.

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