Dubai: For those who don't have the financial skills, winning a pile of money can be a challenging experience. You probably have heard stories of overnight millionaires losing their fortune to financial mismanagement.

If, by some stroke of luck, a tonne of loot lands in your lap, or if you have accumulated a considerable amount of money, it is better to keep some general guidelines in mind to maximise your returns.

Experts say hitting a jackpot is just an opportunity to becoming rich. The real deal is how to invest your windfall wisely and reap more profits. Darren Ashley, managing director of Candour Consultancy, says handling new-found wealth is dependent on two factors: how much risk the person is prepared to take for potentially higher returns and how much access he or she needs to the money.

If one wants to protect the capital, he advises placing the money in a series of fixed interest accounts. For example, keep 25 per cent in instant access and place 25 per cent in six-month, 12-month and 24-month accounts.

"Longer the fixed period, the higher the interest rate will be, but obviously this is in return for less liquidity. As such, we tier the notice periods. So, if the person needs access to cash, he can get it from the low-interest current account and top this up from the six-month account at the end of the six-month period. Likewise, he can top up the six-month account from the 12-month account and so on," Ashley says.

If one has the appetite for more risk, one can put smaller amounts in some or all of the fixed interest accounts and invest the remaining amount.

"An offshore bond will allow [one] to do this both tax-efficiently and economically. Through the offshore bond, the individual can invest in a range of cash, bond, managed equity, market-specific equity and commodity funds, and switch between funds as market conditions dictate," he adds.

Another financial expert recommends that 10 per cent of the money should be kept as cash and the remaining amount should be put in various investment schemes.

Ishrat Kiyani, head of premier banking and wealth management, UAE, HSBC, says 20 per cent can be set aside for "cautious" investment, 50 per cent for "balanced" investments, such as global equity fund, and 30 per cent for higher risk such as emerging market equity funds.

"I always stress that investors should keep in mind that the quicker the timeframe of getting rich, the higher the risk and the associated probability of major financial distress. Acquiring sustainable wealth is the product of a cautious and well-balanced approach; a steady, disciplined and long-term journey," he adds.

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