Thursday, 6 February 2014

How to make money on your investment portfolios...

At Enable our Investment Philosophy rests on ‘passive’ rather than ‘active’ investment management. To put it in the simplest terms we look to try and extract as much of the market return as possible for the least possible cost. This is not the message that you will hear from the majority of investment advisers, stockbrokers or IFAs, but our view, backed by a wealth of research, leads us to conclude that most active fund managers rarely live up to  their hype.



The idea behind the active approach is that it is possible to consistently outperform ‘the market’. If it was so easy then why do the majority of money manager fail to achieve this? Depending on which research you read, only 25% of funds consistently beat their benchmark so you have a one in four chance of picking the right one? 

The research that Enable and others have carried out has demonstrated that over the long term, risk and reward are inextricably linked. In other words, the expectation of higher return will require a tolerance to higher volatility (risk). Moreover, equity investment has delivered the best long term returns when compared with cash, fixed interest securities (such as Gilts etc) and property, although it has certainly not been a smooth ride.  At Enable we have constructed a range of graded portfolios that blend lower risk/return assets with higher risk/return assets to achieve the desired portfolio characteristics. We then model the historic returns to ensure that our theory is backed up by real results.  If you want to explore making the most of your capital Enable's IFA’s are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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