General Content

A Choice of Investment Approach

There are people who believe that with extra knowledge and research, market movements can be maximised for a better return (an ‘acti
approach).

There are others that believe that markets are efficient, that ‘demand and price’ will balance themselves to a natural equilibrium, and so it is not easy to beat the market average (known as taking a ‘passive’ approach).

As we do not have a way to see into the future, we cannot guarantee which approach is the best, therefore, we can offer either or a blend to suit your own attitudes and feelings.

Taking a more active approach

  • You may like the idea of an investment specialist working on your behalf to try to beat the market.
  • You understand that there is no guarantee that they will beat the market.
  • In order to get the chance of enhanced performance, you may have to pay more for this service.
  • You recognise that for this service, fees may be higher than taking a more ‘passive’ approach.
  • Should the specialist not beat the market at any one time, you may question the value of their work.

Taking a more active approach

  • You may not believe that an investment specialist can beat the market.
  • You understand that, by definition, your investment will not be a top performing or upper quartile fund.
  • You are unwilling to pay more for the chance to outperform markets, and do not want the disappointment of possibly underperforming the market in a given period.
  • You would rather invest at lower costs and be reliant on market forces driving performance.
  • You may look back in the future and feel disappointed that your average return was not that of other funds.