It's important to have a clear, precise investment objective. Your investment objective should consider factors such as the level of income or capital growth you're seeking to achieve, and for what purpose. You'll also need to consider your risk appetite when developing an investment objective. Consider what your investment timeframe is. If you have a long-term investment timeframe, you may have more capacity to ride out any market downturns, and so could consider investments with higher risk / higher return profiles. If your investment timeframe is short, you may need to be more cautious.