The kind of questions our experienced financial advisors at Enable would be asking might help you decide if you would prefer an actively managed fund or a passively managed fund.
If you want a fund that performs in line with a particular stock market index then a tracker will do this for you. But we know the indexes have not been at their best recently so you might want a fund that will potentially outperform the market if so you will need to look at actively managed funds and all that goes with them especially the charges.
Then you need to ask yourself how confident are you that you can pick an actively managed fund that will perform better than the stock market remembering that most will under perform their benchmark. Choosing a fund that will outperform its benchmark (and so do better than a tracker) requires investment know-how. If you have the time and are prepared to spend it monitoring your investment maybe it is for you.. With less time on your hands a tracker will move in line with its benchmark (the index/market it tracks).
Another thing to ask yourself is if you want to invest in specialist funds such as those which invest in emerging markets, smaller companies or specialist areas such as technology, healthcare and energy? These are areas where the specialist knowledge of a fund manager who is actively seeking out new investment opportunities can produce added value. Enable’s experienced IFA’s can help you talk this through.
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