The best time to start investing, the old adage goes, was 20 years ago. The second-best time is now. It’s advice that holds true for stocks and other asset classes that benefit from compound interest, whether in the UAE or elsewhere. As you probably learned in school, the more time you stay invested, the higher your returns are likely to be – provided you reinvest any profits.
Yet, many UAE residents shy away from investments –they’re intimidated by financial markets, because they think they don’t know enough or don’t know where to begin, or because they believe they need to start with a specific amount. But whether it’s a fear of making the wrong decision, or analysis paralysis sparked by a surfeit of choice, there’s no reason to hold yourself back.
Most people spend a lot of time worrying about their savings, but not enough about their investment strategy. Investing can help boost your savings and make your make your money work for you. Many investment products can earn you better interest or dividends compared to a traditional savings account. They can help you grow your money faster, so you're better equipped to reach financial goals like saving for retirement.
Investing as a first timer can be daunting, but with the right education and investment advice, you can confidently manage your own portfolio.
You don't need significant savings to start investing. Don't let myths about needing a large lump sum to start investments hold you back. For many people, it may simply make sense to start small with any savings you have. With a systematic investment plan or SIP from Citibank, you can begin with as little as $100. That’s approximate equivalent of dinner for two people at a nice restaurant in the UAE.
It's a good idea to pay down high-interest debt, such as credit cards, before making any investments. However, for lower-value loans, such as home mortgages, you may be able to make more money on the stock market than any savings you would gain from paying down the debt. Determine the difference between the rate of interest on your loan and returns from investment. If you see a higher return from investing in stocks – or even time deposits – than the interest rate, you may want to think about taking on more debt. Remember that there's also a chance of loss when it comes to investments. It's important to determine the priority of your debt and understand your risk appetite before making investment decisions.
All investors, no matter how proficient, start somewhere. Even if you don’t understand the basics, these days the knowledge barrier to investing in the stock market has been lowered considerably. Seek out video tutorials from reputed financial experts or find articles that cover investment products and risks from trusted sources. Spend a few weeks taking online courses and expanding your knowledge through reading. Citibank offers a range of learning materials that can help you better understand different investment products.
A financial advisor helps individuals, families, or businesses reach their financial goals by providing strategies for debt management, savings, investment, estate planning and more. If you decide to work with a professional advisor, it's very important to find someone experienced and vetted. Do your research thoroughly. Ask your friends and family for recommendations or look for testimonials online. Speak to a few different advisors and evaluate their advice against the standard rules: does the advisor make a commission? Are you getting the same advice from multiple sources? What is the contrarian advice? Approach investing the way you buy a car – with a lot of questions and a lot of cross-checking, ensuring you keep control of your money all the while.
Your own bank or investment service provider may also have a team ready to help you make better investments. When you maintain $200,000 or more of total relationship balance with Citi, you get a chance to work with a dedicated Citigold Relationship Manager who can support you on your investing journey.
Ready to start your investment journey? Our step-by-step guide
The investment landscape is very different once you've made your first million. High-net-worth individuals (HNWIs) are typically more focused on considerations like:
At this stage, it's practical to look past traditional investment advice and seek out the help of a professional. As a Citigold member, you get access to financial advisory services that support you throughout your wealth journey. Your relationship manager provides bespoke strategies that perfectly fit your financial goals for yourself and your family. You also have the chance to work with an insurance expert to keep your loved ones protected, and a treasure sales officer for more specialized tips on foreign exchange markets.
Whether your investments are big or small, remember, to steer clear of unrealistic promises, and to rein in your impatience. Make sure you understand exactly how the investment is supposed to make money, and what fees you are being charged. Don’t sign away control at any point of time. And remember that all investing involves risk, so you must consider professional advice before investing. With a little dedication and some perseverance, you could soon be on the road to growing your financial wealth.
If you found this article useful, share it with family members or friends who could benefit from a few investment tips for beginners.
What is Financial Freedom? You have probably heard of the term "financial freedom", but what exactly does it entail? The truth is, financial freedom can mean different things for everyone. For some, financial freedom can mean having the means to pursue a passion, while for others, it may involve building a nest egg for a comfortable retirement.
Out of the many investment options available on the market, mutual funds can be a beneficial portfolio addition for investors looking to diversify their holdings. However, potential investors may not have an adequate understanding of how mutual funds work and hence, may end up passing on this investment opportunity altogether.
This article is intended to provide general information about finance and investments and does not replace or should be taken as professional financial advice. The content reflects the view of the author of the article and does not necessarily reflect the views of Citi or its employees, and we do not guarantee the accuracy or completeness of the information presented in the article except information on Citibank N.A. – UAE products referenced herein.
You work from home, so why not skip the crowds and bank from home, too? Whether you need to pay your bills or transfer money abroad, online banking makes it easier. The UAE’s most advanced banks go even further, with account updates, payment reminders, and product offers within one convenient banking app. Put the bank in the palm of your hand today!
