14 Oct Multi Asset Investments – Divide & Conquer
We have a challenge for you. Try to pick the best performing asset class for 2014 from the picture on the left (feel free to click on the picture for a closer view).
Which did you go for?
The point isn’t actually which asset class actually performed best. It’s that over the time period, picking a well performing asset class is an extremely tricky business.
One of both the joys and perils of investment opportunities is the often bewildering selection of asset classes available. Each of the many potential investments function better under certain economic conditions.
So where to invest for your future?
You might feel a tug towards a particular asset class, such as oil & commodities. But increasing legislation to limit demand for fossil fuels is likely to drive down commodity values. Will full blown Eurozone QE send Euro stocks higher and higher? Surely the greenback will strengthen over the coming years?
Government bonds can be particularly effective as a guarantor of steady growth during turbulent financial times. But this growth can be paltry in comparison to booming equities and risks being hampered by inflation. In fact – aren’t we just waiting for a full blown bond crisis when interest rates finally start rising?
Even property cannot always be considered as ‘safe as houses’.
Even if you’re an expert in one or two areas, as an individual investor you risk limiting your potential investments, while suffering an almighty headache trying to keep on top of where to put your money today.
The solution is to avoid to diving into this financial and emotional storm in a teacup headlong.
Multi Asset Investments
Instead, the key is to look at investing in different asset classes, perhaps through a multi asset investment to gain access to a diverse set of asset classes. Backed by thorough analytical research and forecasting, a multi-asset investment fund seeks to cut through the economic jungle on your behalf by actively shifting fund exposure to certain products, predicting any upheavals in the market for you.
The team of managers provide an actively managed (or passively!) portfolio that can be tailored to your investment style and your personal attitude to risk. This regular rebalancing between asset classes allows your money in accordance with the financial environment, not against it.
We don’t want to tell you to sit back and blindly trust the experts. You’d be advised to choose the best fund managers and the best funds when looking for answers on your investment strategies.
It is after all, your money. Yes, of course we’d be happy to help. Just drop us a line to find out how amazingly low our annual management charges are (alright from 0.22%)
But on the whole you can relax, secure in the knowledge that you’ve taken care not to panic. You don’t need to be a world expert to get great performance.