---
title: Two simple steps to overcome investment analysis paralysis
description: There are two key steps to getting past investment analysis paralysis and taking control of your personal finances.
image: https://www.shojin.co.uk/hubfs/Blog/Overcoming%20investment%20paralysis/Overcoming-investment-paralysis.jpg
---

 Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.

 Risk information

**Risk summary for investments in speculative illiquid securities which are arranged by a firm by way of an online platform.**

 

**Estimated reading time: 2 min**

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.

 

**What are the key risks?**

 

1. **You could lose all the money you invest** 
     - By investing into a real estate project through Shojin you will be investing in a Bond instrument issued by Special Purpose Vehicles (SPV’s) which provide a funding facility for the purpose of real estate development. If the project fails, Investors can lose some or all of the money they invested.
     - Advertised rates of return aren’t guaranteed. This is not a savings account. If the project doesn’t pay the SPV back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher project risk with an increased probability of losing your money.
     - Due Diligence and project oversight is carried out by the platform on each Shojin project that you are investing into to assess how well they are expected to perform. However, you should always also do your own research before investing.
     - These investments are sometimes held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.
2. **You are unlikely to be protected if something goes wrong** 
     - Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. [Try the FSCS investment protection checker here.](https://www.fscs.org.uk/check/investment-protection-checker)
     - Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. [Learn more about FOS protection here.](https://www.financial-ombudsman.org.uk/consumers)
3. **You are unlikely to get your money back quickly** 
     - This type of property investment could face delays that can delay payments. These investments could also fail altogether and be unable to repay investors their money.
     - You have the opportunity to sell your investment early through the secondary market but there is no guarantee you will be able to find someone willing to buy.
4. **This is a complex investment** 
     - This investment has a complex structure to ensure the interest of investors is protected. Investments are made into each designated project SPV and are ringfenced from other project SPV's to ensure full transparency of each investment made.
     - You may wish to get financial advice to understand how the structure works before deciding to invest.
5. **Don’t put all your eggs in one basket** 
     - Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
     - [A good rule of thumb is not to invest more than 10% of your money in high-risk investments.](https://www.fca.org.uk/investsmart/5-questions-ask-you-invest)

[If you are interested in learning more about how to protect yourself, visit the FCA’s website here.](https://www.fca.org.uk/investsmart)

[For further information about minibonds, visit the FCA’s website here](https://www.fca.org.uk/consumers/mini-bonds).

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[Blog](https://www.shojin.co.uk/insights/tag/blog)  4 min read

# Two simple steps to overcome investment analysis paralysis

![](https://www.shojin.co.uk/hubfs/Blog/Overcoming%20investment%20paralysis/Overcoming-investment-paralysis.jpg)

![](https://www.shojin.co.uk/hubfs/Blog/Overcoming%20investment%20paralysis/Overcoming-investment-paralysis.jpg)

 The multitude of options an investor faces can cause indecision and inaction. 

Should you put your money into an actively managed fund, or take a more passive index-tracking approach? How should you split your savings between different asset types, and which assets should you include in the first place? What does a well-diversified portfolio look like in 2022? How much risk are you willing to take, and over what kind of timeframe? 

 

In the process of researching different investment opportunities, the questions to be answered can seem to multiply so continually that every new piece of information received simply leads to yet more questions, and making a final decision becomes harder and harder. This well-known phenomenon has a name – analysis paralysis – and we have all suffered from it regarding our personal finances at one point or another. 

 

This article proposes two simple steps that can be taken to overcome analysis paralysis. 

 

**Time in the market, or timing the market?** 

 

The first way to exit the stalemate of analysis paralysis is to realise that the sooner your investment journey starts, the sooner you can enjoy the benefits! 

 

A well-known financial adage says that success in the investing game is all about time in the market, rather than timing the market. This is because whilst there will always be the temptation to try and make an overnight killing by moving your money in and out of the stock market to benefit from peaks and dips in valuations, this is universally acknowledged to be a high-risk strategy with a very, very low probability of success. 

 

This is because the amount of data that is available and would need to be analysed and evaluated to allow consistently correct short-term trading decisions to be made is simply too vast to process. 

 

As such, the first way to break the deadlock and overcome analysis paralysis is to realise that time spent procrastinating and endlessly analysing is ultimately time when your money isn’t out there being put to work for you. 

 

You are almost always going to be better-off deciding to commit to an investment and then waiting and letting your wealth grow over time. 

 

**Should I just give my money to a hedge fund?** 

 

Importantly, information overload and the analysis paralysis that it leads to is just as much of a problem for hedge funds and institutional investors as it is for individuals managing their own money. The point is that no one can be right every time about each short-term investment decision, but everyone has a fair chance of being right about a few long-term investment choices. 

 

As the table below shows, time and time again evidence points to the fact that the vast majority of hedge funds simply don’t outperform the benchmark indexes they claim to offer superior returns in comparison to. 

![](https://www.shojin.co.uk/hubfs/Imported_Blog_Media/882cf05e-08d9-4f3a-917d-bc1cd148341a.png "Image: https://cdn2.sharein.com/shojin/882cf05e-08d9-4f3a-917d-bc1cd148341a.png")

Table sourced from: [https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and...](https://www.aei.org/carpe-diem/the-sp-500-index-out-performed-hedge-funds-over-the-last-10-years-and-it-wasnt-even-close/) 

 

If you were given the choice of what year from the table above, you’d most like to have put your money into the S&P 500, there would be no reason to say any year other than 2011. And, you might well add, ideally your money would have been invested even sooner, because the pattern shown in the table of consistent, if fluctuating, gains is far from unique to this decade! 

 

Recognising that hedge funds are in the long term extremely unlikely to beat the market, and it is the time pasted from the inception of an investment that is often the main driver of growth, are key steps to overcoming analysis paralysis and starting to take ownership over your own financial planning. 

 

The next question to answer is what type of assets you would like to include in your portfolio. 

 

**What is a ‘timeless’ investment asset?** 

 

The second step to avoid analysis paralysis is to choose to focus on ‘timeless’ asset types. By this we mean assets that will never look out of place in a sensible, diversified portfolio because they have a sound basis in economic reality. 

 

Because some asset types never go out of fashion, there are some investment opportunities which your future self will thank you for entering as early as possible! Tracker funds following major global indices like the S&P 500 would be an example of an equity investments that can be bought once and held for many years. 

 

**Why is real estate also a ‘timeless’ asset?** 

 

Real estate is normally considered as an investment option only open to large investors due to its capital-intensive nature. However, recent innovations have broken down this barrier to entry and for the first time made it possible for private investors to benefit from exposure to this uniquely beneficial asset class. Real estate investments are so appealing to large-scale investors because they are low-risk, stable, income-yielding, and offer capital growth as well as capital preservation. 

 

Properties generate monthly or quarterly rental income for their owners, and this provides a reliable stream of cash that can expected to increase ahead of inflation.  This is because tenancy contract rises are linked to inflation, and therefore their value rises at least in line with inflation.  This income usually provides a 3-5% annual yield to investors and is therefore a generally better source of income than equities. 

 

From a portfolio perspective, the inclusion of real estate can help achieve diversification whilst also hedging a portfolio against economic downturns.  It is important that the performance of real estate tends not to closely correlate to equities and other securities.  For example, in a recession the stock market and hedge funds will decline, but owners of office or residential properties will most likely continue to receive rental income. 

 

The variety of projects available within the overall category of real estate allows further diversification. Real estate investments are available to suit any taste or investment style, from office blocks to logistics parks, shopping centres or student housing, and all available across multiple locations both within the UK and internationally. 

 

**Stop procrastinating – start investing**

 

To summarise, analysis paralysis affects all of us – especially when making decisions about our own money.  There are two key steps to getting past this obstacle which is preventing you from taking control of your personal finances and seeing your money grow over time. 

 

Firstly, recognise that time in the market is the main driver of growth in capital values, so start investing as early as you can. And secondly, whilst there are a bewildering array of assets and strategies to choose from, real estate will virtually never be a bad investment. 

 

**Become an enlightened property investor** 

 

Shojin is an FCA regulated online investment platform enabling global investors to access lucrative institutional-grade investments in the real estate sector on a fractional basis. We specialise in debt and equity investments in middle-market real estate development projects in the UK and our investors come from over 40 countries. Shojin carries out all due diligence, invests its own capital into projects and oversees the projects from start to end, sharing profits rather than raking large upfront fees. This creates the perfect alignment of interest and is a vast improvement on traditional equity investment models. 

 

[Written by Shojin](https://www.shojin.co.uk/insights/author/shojin)

 Published 

 30 March 2022

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Please note that property investments involve risks including loss of capital, illiquidity, default of a borrower and lack of returns. The risks involved will vary by project types, so please make sure you have read and understood the specific risks associated with the investment. Investments made on this website should only be made as part of a diversified investment portfolio. For more details, see the Key Risks. Projections or estimated returns are not a reliable indicator of actual future performance and eventual returns or dividends may be lower than predicted. Information presented on this website is for guidance purposes only and does not constitute financial advice. If you are unsure of the suitability of an investment, please contact your financial adviser for professional advice.

Shojin is a trading name of Shojin Financial Services Limited. This website is a financial promotion approved by Shojin Financial Services Limited which is authorised and regulated by the Financial Conduct Authority (FRN: 716765) (see [www.fca.org.uk/register](https://www.fca.org.uk/firms/financial-services-register) for more information). Companies that issue investments on this platform, including bonds issued by Shojin entities, are not themselves regulated by the Financial Conduct Authority and investments made on this site are not covered by the Financial Services Compensation Scheme. The investment opportunities listed on this website are not offers to the public and can only be entered into by certain types of investors who have satisfied certain investment criteria.

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