- Start by thinking about how much money you need and what for
- You can use rebalancing to take emotion out of investing
- Make sure you have a diversified portfolio, limiting the home bias
Given they often hold billions of pounds in assets, and are run by entire teams of people dedicated to ensuring they are invested in the best possible way, the investment processes of a pension fund do not start from the same point as private investors’ own.
But without discounting the fundamental differences between the two, it makes sense that some of the principles of successful institutional investing can be applied on a much smaller scale. So what can individual investors learn from their larger counterparts?