Ipswich Financial Adviser

Posts Tagged ‘OEIC’s’

When you are looking to invest money or invest within a pension, it is of paramount importance that you diversify where you invest your money.

There are many different asset classes that you can invest in such as, Equities, Bonds, Gilts, Property, Cash and Commodities to name some of them.

Ensuring that you invest in a spread of these means that you are not backing a one horse race. If you only invest in one area, you stand a good chance that you may not get the returns you had hoped for. However, if you spread your money between the various asset classes you ensure that you can make the most of all the investment opportunities that are available.

By diversifying you get the benefit of lowering your investment risk, but with the upside of potentially greater returns, a win / win situation.

You should always get professional help to ensure you have the right mix of investments and that the investment risk you want to take is matched by the spread of investments you put your money into. 

Getting the combination right can mean the difference between making a return or loosing money.

Please feel free to contact Thompson Financial Consulting Ltd, should you require any help or advice ion planning your investments or pensions.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

When you are looking to invest or put money away into a pension you MUST consider where you are going to place your money e.g. into what are you going to invest.

Are you going to invest in Equities, Property, Gilts, Bonds, Cash, Commodities etc, or a combination of these?

But this is not your only decision, once you know what asset class you are going to invest in (Equities, Property, Gilts, Bonds, Cash, Commodities etc) there are many sub sections to these investments. For example, Equities can be in different parts of the world, UK, North America, Europe, Asia, Emerging Markets etc.  So you need to decide on that.

Further more, there are more sub sections such as large, medium or small cap equities.

As you can see the choice is huge and that is ONLY ONE asset class. You need to consider all these options for all of the other areas to.

So the above is too difficult and you decide that you will invest in a “Managed Fund” so that the decisions are made for you, but how do you know the Managed Fund is any good and will provide you returns? How do you know that the investment risk rating of the fund matches the level of risk you want to take. Managed funds can range for 3 up to 9 out of 10 on investment risk ratings depending on how the fund manager invests the money! Would you want to take that much investment risk with your money without knowing?

This shows that you should get professional help in organising your investments and pensions, to ensure the money works as hard as possible for you.

Please feel free to contact Thompson Financial Consulting and we will be happy to guide you through the right investment choices for you.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

Most people have a “herd mentality” to their investing. Are you part of the “herd?” It is usual for people to choose the “flavour of the month” when it comes to choosing their investments. They will pour money in to ONE popular asset class  within a popular fund. They fill their pension or investment portfolio with  narrow focused funds, only to find that overtime, their performance is poor.

Investing is more about looking forward than backwards. Past performance can help but must not be relied upon. There are many stories of investor chasing a particular asset class and fund because of its past performance, just at the time, when the investment sentiment has ran its course and the past returns are unlikely to continue. Remember the dot com bubble or the  commercial property bubble to name just a couple?

Don’t get caught by the “herd mentality”, you need to ensure you have a broad spread of investmnets and not just chase the current “flavour of the month” in investment circles.

Please contact us if you require help and advice on investing within portfolios or pensions. It will save you becoming one of the herd! Contact Thompson Financial Consulting for help and advice.

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.

Investment Tips.

But what does this word RISK actually mean when you talk about investing, well it is really quite straight forward if you replace the word risk with “volatility” it becomes much clearer.  How much volatility, (the amount your money swings up and down in value),  are you prepared to accept within your investment. The more volatility you are prepared to accept the more  potential you have to increase the long term returns that you may receive.

This is one of the key things to consider when you are investing within (pensions, ISA’s, Unit Trusts, OEIC etc) as this will dictate the potential returns and losses you may receive.

I find when I asked my cleints about volatility NOT risk,  we can quickly and easily tailor an approach which is correct for them.

So if you haven’t thought about your investments or pensions in this way, do so and make changes to ensure you are comfortable with how your investments or pensions are set up. Please contact me if you need any help or advice.

Contact me at Thompson Financial Consulting Ltd

The value of investments and the income from them can go down as well as up and an investor may not get back the amount invested. Past performance is not a guide to future performance.