Many clients panic at the thought the FTSE has fallen quickly over a short period of time and ask for reassurance about their investments.
The media often misleads with its focus on the FTSE, which is based on a basket of 100 companies and, in reality, we would never expose our clients to such a risky investment approach!
Our investment approach is concentrated on funds that are designed to manage fluctuations in the market. Many of our clients have now invested in Risk Targeted Investment Funds with Aviva, Legal & General and Standard Life.
The underpinning approach we adopt is a ‘not all your eggs in one basket’ known as Multi Asset / Multi Manager Funds.
What this means is that within the core asset classes, it is important to diversify, so that means for example, not only buying shares in the UK but also in the USA, Europe and the Far East.
It also means that asset allocations and fund selection decisions are taken by a team of experts who have the skills and technical resources to analyse markets on our clients’ behalf. It is simply not possible for any single fund manager to have expertise in every asset class and in every market.
So by all means, continue to watch or read scary FTSE news items but at the same it is useful to remember that your investments are there for the long haul and that the risk is spread through the Multi Asset Funds approach.
See the graph below to see how our approach has performed in comparison to FTSE fluctuations.