How to start your DIY investing journey

Investing money on your own can seem like a daunting task, but with the right guidance and approach, anyone can start building their portfolio. DIY (Do-It-Yourself), also known as self-directed investing, is a great way to take control of your finances and potentially earn returns that can help you reach your financial goals.

Here are six simple steps to help kick off your DIY investing journey:

• Educate yourself

Before investing your money, it's important to understand the basics of investing, such as the different types of investment options available, the risks involved, and how to evaluate potential investments. You can find a wealth of information on investing through books, articles, online courses, and podcasts. While doing our research, ensure that you use reputable resources such as credible journalists and publications.
 

• Determine your investment goals

Define your investment goals and create a plan. This will help you determine how much to invest, what types of investments to make, and how long to hold onto them. Are you investing for retirement, a deposit on a home, an international trip or simply to grow your wealth? Knowing your goals will help you make informed investment decisions.

• Choose your investment platform 

There are many online investment platforms available that allow you to buy and sell shares , bonds, and other assets. Look for a platform that has low fees, user-friendly tools, and a variety of investment options. 

Learn more about Auto Share Invest which allows you to access more than 250 JSE shares and ETFs from as little as R250.

• Build a diversified portfolio

 A diversified portfolio helps reduce risk by spreading your investments across different types of assets, such as shares (equities), bonds, cash property and commodities. This helps ensure that if one asset underperforms, the others may still generate returns.

• Monitor your investments

Once you've made your investments, it's important to monitor them regularly to ensure they are performing as expected. You may need to rebalance your portfolio from time to time to maintain your desired asset allocation.

• Be patient

Investing is a long-term game, and it's important to be patient and not get caught up in short-term market fluctuations. Remember that investing is a journey, and building a successful portfolio takes time and discipline.

Getting started on your investment journey is not an easy decision, however, by following these steps, you can be well on your way to build a financial future that you can be proud of. Remember to stick to the basic principles of doing your research, being diversified, staying invested for the long term and partnering with an investment platform that you can trust.
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If you would like to learn more about investing or to start investing today, visit Standard Bank’s easy-to-use Auto Share Invest  platform. We provide a range of easy investment options designed to enhance your investment portfolio and are tailored to suit your individual circumstances, risk appetite and objectives.