Here are 4 tips to help you maximise your investment returns.

Save More

There is no investing without saving. Obviously the more you save the more you can invest and potentially the more you can earn.

The earlier you start investing the better as your investments will benefit from the power of compounding.

Even saving as little as five pounds a day can help you become a millionaire.

If you need some help to work out how much you can save, try this budget planner.

Invest Regularly

By investing regularly you do not have to worry about timing the markets.

You will be able to automatically take advantage of any dips in the market. You will avoid the costliest investing mistake of selling when the news seems bad and the markets are low.

This is known as pound cost averaging.

Most investment platforms have a regular investment option. This allows you to set up a monthly direct debit which will be automatically reinvested.

Watch your investment costs

Investment costs can really eat into your lifetime profits. Just a small increase in investment costs over a long period can have a big impact on your returns.

Even as little as little as 2% can affect your returns by as much as 50%.

John Bogle in The Little Book of Common Sense Investing goes into detail about the impact of costs. He argues the high investment costs charged by professional fund managers are one of the key reason most funds under perform the market.

Watch your taxes

Taxes can take huge chunks out of your investment returns. In the UK any gains over £12,300 are subject Capital Gains Tax and any dividend income over £2000 is subject to income tax. See for full details.

However, there are investment accounts like an ISA in which any capital gains or income are tax free.

Make sure you use the right investment account for you. Don’t give away your hard earned gains unnecessarily.

4 tips to maximise your investment returns conclusion

The key to maximising your investment returns to make sure you don’t end up paying too much in fees and taxes. It is hard enough to make money in the markets as it is.

Research investment platforms and investment costs just as you would if you were buying a new fridge or car. Make sure you open an investing account that takes advantages of any tax breaks.