How to immunise your portfolio against coronavirus: Focus on the long-term and don’t withdraw your savings, say experts
Investors worried about the cost of the coronavirus epidemic to their wealth should focus on the long-term and not withdraw their savings, experts say.
Maike Currie, investment director at Fidelity International, says: ‘There will always be bad news for markets to worry about.
‘Selling your investments now will mean losing money and then potentially having to reinvest at a time when things are looking better — but you’ll get less for your money.’
Diversify: One way to immunise your portfolio against market shock is to make sure investments are diversified enough to handle events such as this one
Concern among investors, however, is understandable. Companies globally are suffering the effects of the spread of the virus.
The FTSE 100, which makes up Britain’s biggest companies, fell by 3.3 per cent on Monday wiping around £62 billion off their value.
One way to immunise your portfolio against this kind of market shock is to make sure investments are diversified enough to handle events such as this one.
Currie says: ‘Having a mix of assets across sectors and geographies is the best way to ensure that one spell of volatility doesn’t take your portfolio down.’
She adds: ‘A long-term view is crucial when it comes to investing.’