Staying the course

04 August 2017

There is much on the pages of our website advocating the good asset allocation of funds to meet your attitude to investment risk. Put simply, a good diversification of assets can ensure that there are not 'too many eggs in one basket', as the saying goes. This has the potential both to reduce risk within agreed parameters, whilst providing the potential for returns. More on risk can be found on our Investment Risk Scale here:Investment Risk Scale

Thus far, 2017 has seen firm returns in many global equity markets, although from a UK perspective this is in part because of the volatility and fall in Sterling. In contrast, around a decade ago we were leading up to the major economic recession which saw many fund values fall. This in itself was of great concern to many, but only a real problem if they took action, such as selling out, at what invariably proved to be the wrong time. Staying the course through the peaks and the troughs has many positives in securing long term growth and existing wealth.

With returns on funds largely being positive over the last year, staying the course might be an easy option to take at this time. However, this view needs to be balanced with other less prosperous periods, when returns may not be positive. We are not advocates of fund switching for the sake of it, but we are if an individual need arises, or a re-balancing requirement is identified with a client, or their attitude to or capacity for investment risk has changed, or we identify an investment area we believe has run its course and faces unacceptable headwinds. In these circumstances, we will make suitable recommendations to meet these changing needs. Communication with our clients is vital in allowing us to review and amend where appropriate existing plans and arrangements.

This is part of the service we offer at a point of review with a client to ensure that an agreed allocation continues to meet with their ongoing needs. You may know that we consider investment markets regularly within the Chapters Financial Investment Committee. More details can be found here: Chapters Financial Investment House View

No individual advice is provided during this blog. Past performance is not a guarantee of future performance. Fund values can fall as well as rise and are not guaranteed.

Keith Churchouse FPFS


CFP Chartered FCSI

Chartered Financial Planner

Chapters Financial Limited is authorised and regulated by the Financial Conduct Authority, number 402899.