5 Investment Lessons to Maximise Returns

Morningstar Investment Management's Dan Kemp shares five important portfolio construction ideas that will help reduce the number and impact of mistakes

Dan Kemp 16 April, 2018 | 8:01AM

Investment choices education costs portfolio investing maximise returns

Costs Must Be Kept to a Minimum

Let’s start with an undeniable path to improving outcomes. Reduce costs. Costs come in many forms – fund charges are what we target the most, but we must also think about trading costs, hedging costs and finally opportunity costs.

In the short term, costs may not feel important – when markets move by percentage points on a weekly basis, it is easy to forget about basis points on an annual basis – but penny pinching is one of the most underrated paths to long-term success. Think of costs like a hurdle rate, primarily because it becomes easier to hit a return objective.

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About Author

Dan Kemp

Dan Kemp  is Chief Investment Officer, Morningstar Investment Management EMEA

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