It is a shame to hear that you have had trouble getting any financial advice because you save on a regular basis, but on the flip side, you obviously do your homework and I hope that you have picked well-managed investments.

As you now have a larger sum to invest, you could take advantage of this and get some independent financial advice, including a review of your current investments. Failing this, continue to read the financial press to get ideas of well-managed funds but it will be at your discretion as to whether they are suitable for you or not.

As you have pointed out, diversification is really important to try and manage risk. This means diversifying between asset classes as well as providers and geographical regions. Either you can split your money between a number of different investments to create a portfolio that matches your risk profile, or you could consider a multi-manager or multi-asset fund.

With stock markets volatile once again, it brings home the need to include a number of asset classes within your investment portfolio to reduce volatility and this is where a multi-asset fund can be so useful. Not only will it include these assets, such as UK and international equities, fixed interest and property, as well as alternative assets such as hedge funds and structured products, but it will execute active management between them.’

While equities play an important role, alternative investments and fixed interest are all important non-equity correlated assets, which can help diversify and, therefore, reduce overall volatility. And you don’t need to have loads of money to invest. Some funds allow low minimum investment amounts and even offer regular savings plans for premiums of as little as £50 per month.

Investing on a monthly basis can remove an element of the risk of poor timing, however, as any stock market-linked investment should be held for the long term anyway, it could be just as beneficial to invest a lump sum, especially when we have seen the stock markets take a tumble. Maybe invest half over the course of six or 12 months and half as a lump sum. There is no way of knowing which route will buy you the largest number of units.

Whether you choose unit trusts or OEICs makes no difference as they are so similar – what is important is the outcome, so it is better to pick a fund based on the manager’s expertise, rather than its investment structure.