Do you know about the risks of investment volatility? Read on to gain a better understanding and learn ways to avoid risking your precious investment…

Since the global credit crisis, investors have become more aware of risk in general and portfolio volatility in particular.

In a world of 24/7 media commentary continuously focusing on economic problems, such as the debt crisis in Greece or the recent share falls in China, it’s understandable to feel a little concerned about the investment climate and the volatile state of stocks and markets.

However, it’s important to realise that some market volatility is inevitable; markets are likely to move up and down and accepting a degree of risk is part and parcel of investing.

What you have to decide as an investor is how much risk is right for you. While the process of building a portfolio includes strategies to reduce risk, it cannot be eliminated altogether.


The key to investing (and avoiding investment volatility) is to ensure you don’t put all your eggs in one basket.

Spreading your money around the different asset classes – cash, shares, bonds and property – helps reduce your exposure to risk and investment volatility. Regularly revisiting your risk appetite is important too. While younger investors are potentially happy to accept a greater degree of risk as time is on their side, those approaching retirement may well find their appetite for risk diminishes and may prefer to opt for a more conservative investment strategy with less exposure to risk.


While focussing too much on short-term gains or losses is unwise, so too is ignoring your investments altogether.

If you haven’t reviewed your portfolio for a while, it could be time to discuss matters with your adviser. They will be able to check that your asset allocation is still right for you, and undertake any necessary portfolio rebalancing required.

If you’re based in East Sussex, Clifford Osborne IFA offer an investment and portfolio review to help you reduce the risk of investment volatility. Our IFAs are based in Eastbourne and cover Lewes, Uckfield, Seaford, Newhaven, Bexhill, Hastings and Crowborough. Please do contact us if you have any questions or would like to book an initial investment, mortgage or pension review without cost or obligation.