UnaVida |Investment Supermarkets and fund tips

Investment Supermarkets and fund tips

Investment Supermarkets and fund tips – Fund Supermarkets are quite popular; they tend not to provide advice but often offer lists of the most “popular investment funds” or “best-buy lists”. I met someone recently who was buying shares in single companies on the basis of coloured scale which was green if more people were buying a share and red if more people were selling a share.

I have nothing against Supermarkets, I regularly go to Waitrose to select a nice bottle of wine, perhaps with my favourite cheese – Manchego. I wonder however if that is the right way to choose investments?

A recent report in the Daily Mail includes the statement that “Best – Buy lists are, in reality no more than a marketing gimmick that helps brokers sell investments”. Also that many of the best buy investment funds turn out to be duds.

Also, shock horror that there is a strong rumour that the fund supermarkets charge company’s additional fees to appear in their lists. I thought the FCA had put a stop to this practice?

After reviewing the performance of the funds included in the best buy list, the article concluded by stating that according to the law of averages, investors would have had as much chance of getting a decent return if they had picked a fund at random. And that the best buy lists were full of mediocre funds.

In my opinion clients obtain comfort from dealing with a large institution, such as an insurance company or large fund supermarket warehouse, these provide a “parent” for the investor who perhaps because of lack of knowledge in investing feels at times like a “child”, once more.

The alternative course of action, that is paying fees to a highly knowledgeable adviser who will educate them over time in how to invest properly – is of course rather more hard work.

Registered in England and Wales. Registered Number 5553273.
Registered Address: Victoria House, 26 Queen Victoria Street, Reading, Berkshire, RG1 1TG

A pension is a long-term investment that typically cannot be accessed until age 55 (57 from April 2028). The level of pension benefits offered could change depending on the value of your investments (and any income they may generate).

The interest rates in effect at the time you begin receiving benefits may also have an impact on your pension income. The tax consequences of pension withdrawals will depend on your unique situation. In later Finance Acts, tax rates, tax bases, and tax relief may change.

The opinions expressed by Ray Best are meant to inform and educate. Before making any investment decisions always take advice that is pertinent to your investment personality and financial situation.

You are aware that past performance will not necessarily be repeated in the future, but you should be aware that persistent poor performance invariably will.

The value of an investment and the income from it could go down as well as up.

The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

UnaVida Wealth Management Ltd. is directly authorised and regulated by the Financial Conduct Authority (440577).

The guidance in this website is primarily aimed at a UK audience and is subject to regulation by the Financial Conduct Authority (FCA).

The Financial Conduct Authority does not regulate tax planning, estate planning, or wills and any form of legal documentation.