In truth, nobody can promise you a successful investment strategy. If they do they’re lying.
Unless you can predict the future you have no way of knowing what investments will perform well. If you already have an IFA the chances are you’ll have experienced the inevitable fund switch recommendations that appear with alarming regularity. That’s because despite setting up a portfolio of investments that suits you and is ‘most likely’ to outperform its peer group, a year later everything has changed and it’s another set of funds that are now ‘most likely’ to outperform their peer group. Sound familiar? This constant chasing after higher returns and better performing funds only leads to one thing – higher costs. That’s because you’ll pay commission every time you switch funds. If you are regularly switching funds each year the costs very quickly start to add up and begin to affect the return you can achieve (ironically). Research tells us that the majority of investment returns can be put down to the sectors you invest in, rather than the funds you choose within those sectors. If this is true then surely it makes sense to place most emphasis on choosing the right sectors for your needs? The secret to a successful investment strategy is to get the right balance between sectors. Once you’ve got that bit right the rest is easy. If you would like advice relating to any of your investments then please contact us today.