Know your clients' limits

Which is more important, investment selection and portfolio design, or managing clients' expectations of risk and return? Both are key, but the latter is vital to ensure clients 'stay the course' long enough to realise the benefits of their adviser's portfolio recommendations. Indeed, it is our view that more investment value is destroyed by investors failing to stick with 'right' choices than by making 'poor' investment selections. And the chief reason that investors abandon their plans by surrendering policies, going into cash or ceasing contributions is because they experience investme...