Over the years and even in difficult times you need to have quite a good reason not to use a tracker fund. If there really was a way to guarantee an extra 1pc return every single year, investors would go all out to find it but many ordinary investors ignore the chance to get exactly that because they overpay for investments they could get elsewhere for less. One of the cheapest ways for investors to access a market is through a “tracker” that buys all the stocks in an index according to their size.
And there’s plenty of evidence to suggest doing this gets you a better total return in the long run.
This approach suits those who are happy to make their investment and forget about it. It will rise and fall with the market, of course, but there’s no chance they’ll languish in a badly underperforming fund.
But then there are more active managers that can boast a history of beating their market of course these bets won’t come good all the time but sometimes they can get lucky in solid companies form areas they know well and avoid overpriced, bad ones that trackers will blindly buy. It is impossible to know exactly what to do but Enable’s IFA’s in Bishop’s Stortford can help work with your attitude to risk.
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
Source - The Telegraph
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