For the first time in the economic history of Malta, we are witnessing something quite interesting; where slowly but surely more and more Maltese citizens are becoming open to the idea of investing their hard earned cash. This however does not mean that the sceptics have up and vanished; on the contrary, upon further investigation, it would seem that the problem is in how to get over that first investment that prevents one from investing.

The thing to note is that there's a lot of conflicting information out there, and events such as the recent Chinese stock crash and the VW scandal, don't exactly help matters, as many are simply intimidated by such events, thereby preventing investment. To this we have to thank large news organisations that make it seem as though each day is October 19th of 1987.

Granted global markets are volatile, and yes people do lose money, however like any seasoned investor will tell you, it’s all about Long term investment strategies. If new investors understand this, they can make a plan which will carry them for the long term. Here are some considerations to make when formulating your first investment strategy, as well as reasons why now is a great time to do so.

Invest now, but not because the market is down

The best time to plant a tree was 20 years ago; the second best time is now. The same goes for investing. The stock market is inherently unpredictable. This has been proven by thinkers and analysts all around the world. People who try to get their money invested in anticipation of a sudden rise are gambling. It’s like trying to catch a falling knife; you might catch it unscathed, or you might lose a finger.

One way to invest in a growing market as a whole, is through ETFs (cheaply priced shares of mutual funds). The best way to invest in mutual funds or ETFs is whenever you have money. The market will rise and fall, but it has a tendency to grow over time. Most new investors will need to adopt a strategy of slow, steady growth. If you've never invested, invest now.

Choose funds that take the guesswork out of investing

The owner of these funds benefits from the overall growth of the entire market, even if certain stocks fall by the wayside. You can easily buy your own funds and get advice as you go along

Don't listen to the noise

Just because a company x experienced a dip doesn’t mean the market crashed. You have to ignore the media suits who want to convince you to jump ship and instead stick to the plan set forward by your investment manager and think with regards to a long term stand point.

This article was issued by Steve Diacono for Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.