10 steps to successful investing in 2025 and beyond

The New Year is the perfect time to revisit your investment strategy and set a fresh course for the year ahead. Whether you’re fine-tuning a well-established portfolio or just getting started, taking a few practical steps can help you grow as an investor and make the most of market opportunities in 2025.

In this guide, we’ll explore ten actionable ways to elevate your approach, from reviewing portfolio performance to embracing market volatility. Each step is designed to be simple, effective and – most importantly – aligned with a long-term investing journey.

Step 1: Review the year that was

Before diving into new goals, look back at your portfolio’s performance over the past year. Were there standout investments that you’d like to replicate? Any choices that didn’t pan out? Reflecting on what worked and what didn’t is a valuable first step for fine-tuning your strategy. This review doesn’t just tell you how well you did; it reveals insights into your decision-making process. Consider what you might keep, change or avoid next time around!

Suggested reading: Betashares Direct – Tools and reporting

Step 2: Refresh your financial goals

With each new year your financial goals might evolve, whether it’s saving for a home, retirement or simply building wealth. Take this opportunity to ensure your goals are still aligned with your broader life ambitions. Updating goals can give fresh purpose to your investment journey and keep your strategy relevant. Plus, setting clear, measurable goals makes it easier to track progress and stay motivated.

Suggested reading: Betashares explains – Setting investment goals

Step 3: Find your ideal asset allocation

A balanced asset allocation is key to managing risk and maximising returns. Think about your ideal mix of equities, fixed income and cash, and whether it still aligns with your risk tolerance and goals. It’s a bit like customising a playlist – only with the right mix of investments, you’ll get a portfolio that hums along nicely with your financial needs.

Suggested reading: For those earlier in their journey, this article offers a simple guide to asset allocation: An ETF investment portfolio guide

For more experienced investors looking to take their asset allocation up a notch, this guide delves into more detail on how to sharpen their strategy: Is your portfolio really diversified?

Step 4: Put a plan in place: lump sum vs. dollar cost averaging

When it comes to investing, should you go all in with a lump sum or spread your investment over time with dollar cost averaging (DCA)? DCA can help smooth out volatility, while lump-sum investing might offer faster compounding in a rising market. Think of it like deciding between eating your chocolate all at once or savouring it over time. Pick the method that fits your risk appetite (or maybe a little of both!).

Suggested reading: How to make the most of a lump sum investment

Step 5: Implement regular, automated investments

An automatic investment plan takes the guesswork and emotion out of investing, which may help you grow your wealth more consistently. Set up regular contributions, so your portfolio builds up on ‘autopilot’ over the long term. Think of it as putting your investing on cruise control – letting you focus on other things while your investments keep working for you.

Suggested reading: Investing on autopilot: Your financial workout plan

Step 6: Keep a cash cushion (and know where to park it)

A solid cash buffer is essential – not only for emergencies but to seize buying opportunities when they come up. Think about where to keep this cash; balancing liquidity with returns will make sure your cushion is ready when you need it. High-yielding savings or short-term bond ETFs might be worth exploring.

Suggested reading: Balancing act: allocating cash without missing out on market gains

Step 7: Plan for (and embrace) market volatility

Market swings are natural so, rather than fearing them, plan for them. Make volatility work for you by treating dips as buying opportunities. This approach can turn the inevitable ups and downs into strategic moments for growth. Investing is a marathon, not a sprint – sticking to the course often yields rewards.

Historical returns of the Australian share market: S&P/ASX 200 Total Return Index

Source: Morningstar Direct, Betashares. Returns from 02/04/2001 to 06/08/2024. Past performance is not indicative of future performance. You cannot invest directly in an index.  

Suggested reading: Tips for navigating market volatility

Step 8: Leverage technology for portfolio management

Investment apps and online platforms can help you keep a close eye on your portfolio. Many tools offer real-time insights, performance tracking and even automated rebalancing. Leveraging technology can make portfolio management more efficient and empower you with valuable data at your fingertips.

Suggested reading: Learn about Betashares Direct, offering zero brokerage on 300+ ASX shares and any-ASX traded ETF – all in the palm of your hand!

Refer to the Betashares Invest PDS at www.betashares.com.au/direct for more information on interest retained by Betashares on cash balances and portfolio fees.

Step 9: Understand tax implications

Tax planning is a key part of investing. Understanding the tax impact of each investment decision lets you maximise your after-tax returns. Look into tax-efficient strategies, like aiming to minimise capital gains by holding assets longer or choosing tax-effective ETFs. A little knowledge here can go a long way.

Suggested reading: Our handy ETF tax resources page allows you to access our tax guide, answers common questions about ETF distributions and provides information about tricky tax issues relevant to ETF investors.

Step 10: Stay informed about market trends

Keeping up with market trends can give you a competitive edge, allowing you to adjust your strategy when necessary. From economic shifts to sector developments, staying informed helps you make timely decisions and keep your portfolio aligned with broader market movements.

Suggested reading:

• Weekly Insights newsletter: a weekly digest on investing for long-term wealth
• Bassanese Bites: a weekly market and economic update from Betashares Chief Economist, David Bassanese
• Investing for Change: Our quarterly update on ethical, responsible and sustainability-themed investing

You can sign up to the newsletters here.

Make 2025 your year of investment growth

Becoming a better investor doesn’t happen overnight, but these ten steps can help you build a more resilient and goal-oriented portfolio. As you implement these practices, remember to keep it enjoyable – investing is about growing your wealth but it’s also about achieving your life goals with confidence.

With a clear plan and a commitment to regular progress, 2025 could be your most rewarding investment year yet..