2012 is set to be a big year for the EuroZone – and it could prove the case for your investments too. The two are likely to be linked and, given the high global stock market volatility and EuroZone worries triggered during the second half of 2011, it could mean the performance of your investments is being adversely affected.
An increasing number of investors have chosen to ditch their investments. According to Investment Management Association (IMA) figures, November 2011 saw the largest recorded net outflows from equity funds since records began in 1992 – largely prompted by fears over stock market falls. Yet despite the possibility of further market volatility in 2012, it’s strongly advised that you don’t allow short-term under-performance to undermine your longer-term investment strategy, by making any hasty decisions.
Although past performance should not be considered a guide to future returns, historically markets have recovered strongly from sudden market falls. For example, after the 9/11 attacks in 2001, the FTSE 100TM immediately fell 11.8%, before growing 57.2% over the next five years. Encashing your investment when markets suffer a downturn will ensure you realise the losses, whilst being unable to benefit from the long-term potential gains if and when markets recover.
That’s not to say you should simply leave your money where it is – your financial objectives are too important to simply be left in a potentially under-performing fund. What might have once been the best place to invest your money may no longer be the case – especially with the recent market volatility – and the cost of not reviewing your investments now could include them continuing to under-perform.
According to Analytics research, across the four main IMA sectors a total of £24.6bn investments were sitting in below average funds at the end of 2010 – 12 months on, that total has increased to £32.7bn. It may be that your money is now amongst this rising under-performing investment total.
NAHT Personal Financial Services, provided by our chosen partner SFS, can help you to review your existing investments and research the market to recommend alternative solutions – if they feel you could be making more from your money.
SFS also offers a unique, market-leading investment proposition, Monitored Informed Investing (MII). For a minimum investment or re-investment of £20,000, MII aims to deliver you above average returns over the medium to longer-term. This includes continuous monitoring of your investments on your behalf, and, if they deem it necessary, SFS will even offer to switch investments into a better-performing fund, with no additional MII Charge.
The difficult economic climate is likely to continue for some time yet, but can you afford to let it compromise your ambitions? Call SFS today on 0800 012 1248 to arrange a no-obligation review of your investments – to find out if there are better ways of potentially achieving your medium to longer-term financial aspirations.
Please note: Any investments SFS recommends may included equity-linked products. These are not like bank and building society accounts as their value can rise and fall and your capital is at risk. SFS charges a fee for the products they arrange for you. Any SFS charges, initial and/or ongoing, will be disclosed to you in writing before you make a final decision.
Page Published: 25/01/2012
