Fund managers need to do a better job of explaining risk levels to their retail clients, suggests Martyn Ingram of The Investors Partnership
Retail investors usually have simple investment objectives - for example, some will want to target a rate of growth that exceeds the return they would receive from just investing in a high-interest building society account, whereas others will require a high level of income but would also like to preserve the buying value of their remaining capital, after taking account of the effects of inflation. Providing solutions to these simple requirements is far more challenging than most investors realise yet, as an industry, we rarely tell investors this. Indeed, many private investors might thin...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes