Index Investment what’s not to love?

Enable’s experienced Independent Financial Advisors of Bishop’s Stortford know that the dangers of wealth investment can seem overwhelming to start with which is why we prefer to work with passive investment models.  Some wealth managers like to use active management of funds that can make dramatic claims to success as can the funds run by stock-pickers and more risk taking firms. But at Enable in Bishop’s Stortford we believe there are several good reason for modest steady investment.  To start with index investing is simple and one of the mantras you hear over and over again in personal finance is never invest in something you don’t understand, it’s excellent advice that can be too easy to ignore.

Index investing however is easy to understand, even for those with little or no investment experience.  You use simple index tracker funds or Exchange Traded Funds (ETFs) to construct a diverse portfolio very simply keeping your nest eggs in many baskets.  Then you make regular contributions to your funds and review and adjust your portfolio as little as once a year.  Above all you do not try to time the market or pick hot stocks.

Study after study shows that most actively managed funds are beaten by index funds over the long-term.  Because index trackers are cheap their low costs nibble away less of your pie than pricier active funds, which rarely put in the consistently stellar performances required to justify their high fees.  Index investing is not a ticket to instant riches and it doesn’t aim to beat the market but to capture the returns of the market. At Enable to build your investments the first step is to put money on the tortoise not the hare.

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