After a few weeks of growth through July and August, the first week in September has seen things stall a little bit. Now it could quite easily be a lot of people cashing in on higher valuations than they have had for a while or the markets merely reflecting how they think various economies are going – or not. This once again is the situation where you need to do your research on funds to try and identify what funds are affected and why. Our analysis shows that we are seeing reductions right across the board with only a minor exception here and there – so it is a global trend. 

One major way that you can reduce such losses is to take a good spread of funds and this is a spread of geographical areas, as well as types of focus of funds, as well as types of funds. At MAP for the vast majority of clients we tend to pick 1 spread of 10 funds, which we think is manageable enough as well as giving a good spread. At MAP we also take a spread of risks as well, because we do focus on what funds are low risk, medium risk or high risk, and you need to take a spread of all of these. Our standard split for a lot of clients is 3 low 4 medium and 3 high, and this not only gives a spread of risks, but also types and areas as well.

Our long term research just now is looking at fund performance over 5 years but that is only the start. We also look at fund performance over the previous 3 months, although at the current time this is only for the last 9 weeks since it seems that just about every fund up to the end of June lost money – so it is only worthwhile looking at performances from the beginning of July. By looking at both long term and short term, you can start to see the trends as to where funds are going – and that is vitally important.   This is what research does – it gives you almost “inside” information although I would say that it is more insight information as it will give you a better insight as to where you might place future investments.     

This is what we do at MAP – we work hard at putting our clients money into investment funds that are likely to grow – and you can only get this once you have done the research.     

This is why our fund choices actually deliver for our clients because they are choices based on FACTS.   

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk