Who doesn’t want to beat the financial markets? In the real world, it makes sense to take a more balanced approach to investments.
There are no quick wins, certainly none that will help you enjoy a consistent retirement income. Speculation is about the short term. We believe in discipline and patience, and we always have your longer-term objectives in mind.
We are highly qualified financial planners, and wealth management is an area we are happy to advise on.
We’re all different, and there are numerous ways to invest savings to achieve the required outcomes for a wide range of people. That’s why we never apply a “one cap fits all” approach to investing our clients’ money. That’s just one of the reasons we’re different.
The main different styles of investing are as follows:-
- Active management is a style of investing, whereby a fund manager seeks to generate better returns than would be achieved by simply buying and holding all the investments in a particular market, benchmark or index. Active fund management tends to be higher cost than Passive.
- Passive management is a style of investing that aims to match the performance of a market index as closely as possible. As such, passive investment strategies don’t rely on the views of a fund manager to determine where they invest.
- Blended management is a combination of both active and passive styles.
Active or passive? The truth is, that it’s time invested in the market that determines the long term outcome, not chasing this or that ‘unique’ opportunity.
Our conclusion: We value aspects of the Active, Passive and Blended strategies and indeed the ability to select these on a client by client basis. Therefore, we believe this provides sufficient flexibility to be suitable for the majority of our clients. There will be ups and downs: 2001’s dot-com bust, 2009’s banking crisis, for example.
But stay in the markets long enough, matching its average performance, reinvesting interest and dividends and, thanks to the magical effect of compounding, your wealth will inevitably grow. It takes discipline and patience, but good investing really does work like that. Contrary to what a lot of people think is true, you really don’t need to speculate to accumulate!