The worst thing investors could do is pull out of equity investments because of the losses suffered ...
The worst thing investors could do is pull out of equity investments because of the losses suffered over the past two years, a selection of financial advisers has told an AITC roundtable.
Mark Dampier, head of research at Hargreaves Lansdown, Jason Hollands, deputy managing director at Bestinvest, Gillian Cardy, Professional Partnerships and Roddy Kohn, principle at Kohn Cougar all agree that the worst thing a client could do is panic and withdraw from markets that are increasingly likely to turn around at some point.
As Cardy puts it: "If you do not have faith in the long-term viability of equities, you shouldn't be in the market at all.".
Investment trusts are an attractive proposition at present because of the discounts currently applied to some solid performers.
And where a company offers similar unit trusts, OEICS and investment trusts, it may pay to consider switching out of the former into an investment trust trading at a large discount.
In such cases the customer may get exposure to the same underlying assets, but at a discount to the unit price.
The advisers particularly like global growth trusts, which provide diversification and often come with a long track record - more than a century in some cases.
The split capital investment trust sector draws mixed reviews still, although it is pointed out that some splits are well funded and transparency is improving all round the sub-sector.
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