Investment

We often find people have bought investments through the years without any real plan. Sometimes they were attracted by a new launch offer or a write up in a Sunday newspaper or because they liked a particular sector or country to invest in.

Often funds were acquired without enough thought about how they fitted within the rest of the  portfolio. Was the purchaser aware of the investment risk profile of the fund and did it accord with their attitude to risk? Were the tax implications considered? Were tax efficient investment vehicles used for the fund?

Even if the above considerations were taken on board at the outset, over the years the profile of investment funds can change and so can portfolios. As a simple example, assume someone has two investment funds and invested 50% of their investment in each. Assume also they have a medium attitude to investment risk. One fund is Gilts, which is low risk, and one is Far East equities which is high risk. Taken together the combination would give a medium risk profile. 

However, it is highly unlikely they would have grown at the same rate over the years. So if the Far East fund had grown more quickly than the Gilt fund, for example, the investor could now have a portfolio risk higher than they would be comfortable with.  

If you need to review your investments to see if they continue to meet your needs, adhere to your attitude to risk and are invested tax efficiently, call today on 07590 828227 or drop an e.mail to ken@mcneilstevens.com.