Investment Insights
Investments do rise and do fall in value and we strongly advise that professional advice is taken before investing your money
It’s amazing how many people just do not pay any attention to their pension funds, and what they don't realise is that they are likely losing money, by not doing so. The following is WHY people should take action TODAY;
The simple reality is that most people will not have enough saved to leave work when they want to and then live on their ‘accumulated wealth’ without seeing a fall in living standards. This article is not about how and when you should start aggressively saving (clue), but how to optimise what you have already accumulated through effective asset allocation. Asset allocation you say? What we need to understand is that it is primarily the asset you buy which determines the return you achieve, not the fund. We advise our clients which assets are likely to offer the best potential growth going forward and then guide them on how to invest across those assets based on the risk that they are prepared to take. Now, no one asset class will be the 'top-performer' at all times and this is why we embrace a strategy which is DIVERSIFIED, that way you don't 'put all your eggs in one basket'. Much is debated within the investment community about 'passive' funds versus 'active' fund management, and for those of us who have studied this subject in detail, we will typically use for a high net worth client a mixture of the two as we know that it’s the asset class you buy that is important not the product. The fund management business is great at inventing products, it is now said that there are more types of passive (index) funds than stocks - I rest my case! All this ‘noise’ does not help you as a consumer and it detracts a lot of people from making the jump into taking action! We are interested in serving our clients and optimising their returns - that’s what gets us through the door and this is why clients choose to stay with us. At SMAssociates we believe in focusing clients' portfolios on assets that offer them a greater potential return, whilst balancing in terms of risk and reward, i.e. why take more risk for no greater return when it is possible to take lower risk for the same return (optimisation). If people do not maximise their returns, then the simple fact is that they will have to save MORE! Our methodology is that we carefully select which assets we believe offer our clients the potential for future returns and then match our research with the best solution be it an 'active' fund or 'passive' fund for each asset class - this is the foundation of a client's portfolio. We then consider volatility in terms of the client's investment journey and on a continuing basis we REVIEW, REVIEW and REVIEW our client's portfolio returns and risk taken, making adjustments along the journey to reflect our client's goals and risk. It’s the art of blending the correct asset with the appropriate fund that helps our clients in achieving their bench mark goals. |
AuthorSteven is a Fellow of the Personal Finance Society, whom is passionate about investing and getting the most from your money. Archives
February 2024
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Steven Mufti & Associates Ltd is authorised and regulated by the Financial Conduct Authority.
Financial Services Register Number 607613. Registered in England & Wales, Company number 8664240. Registered Office address: 27 Armitage Court, Ascot, Berkshire, SL5 9TA. Telephone: 01344 623811 Email: advice@smawm.co.uk The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted to customers in the UK. The FCA does not regulate taxation advice. The value of your investments may fall as well as rise. Financial Conduct Authority register: https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000NMlk7AAD |
30/4/2018
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