| Financial Planning |  | |
| Home |
|---|
| About SFIA Group Ltd |
| Our Service |
|---|
| Overview |
| Costs and Benefits |
| Investments |
| Family Protection |
| Pensions |
| Retirement |
| Case Studies |
| Why SFIA Ltd |
| Wealth Manager |
|---|
| Client Logon |
| Financial Information |
|---|
| Property and Mortgages |
| Legal Matters |
| Latest Tax News |
| Retirement |
| Investment News |
| Family Protection |
| Business News |
| Our Details |
|---|
| Contact Us |
Investments
We invest to provide a safeguard against your future needs, ensuring that money is readily available whenever you require it.There are no simple solutions when it comes to investments, but it is important to recognise that all investments carry some degree of risk:
- Absolute under-performance – that the value of your money will fail to keep up with inflation
- Relative under-performance – that your investment will not perform as well as other similar ones
- Unacceptable volatility – that the value of your investments will fluctuate just when you need access to them
- Loss of capital – that part of all of your capital will be lost
Leaving money under the mattress is of little value; even if you are not burgled or the house catches fire, you will see its value fall due to the erosive power of inflation. However, adopting a diverse investment strategy that matches different types of risk to different objectives makes very good sense.
Investment timescales
If you are likely to require access to your money within five years, a deposit-based strategy, using Cash ISAs for exapmle, is likely to produce less exciting returns, but carries low charges and might even keep place with inflation.
On the other hand, when investing over longer periods, short-term volatility is of less concern. This means that using equities or property* can be more attractive, since there is greater potential for long-term growth than with cash or deposits. (In practice equity investments are more often via collective arrangements such as unit tusts, investment trusts and insurance bonds.)
However, any investment strategy should take account of asset allocation, if it is to succeed.
This involves considering the different characteristics of each asset class and matching them to personal objectives. By not 'putting all your eggs on one basket' you risk missing out on the best growth in any one class (only ever really measured with hindsight) but you will also remove the possibility that you will suffer the worst downsides of any one asset class, too.
We help you to build an investment strategy that aims to help you achieve your personal goals in a balanced way. To discuss your requirements or for further information, please Contact us.
*Investing in property can involve the risk that investments are more difficult to realise and values are based on the opinion of a surveyor.
THE VALUE OF INVESTMENT IS NOT GUARANTEED BUT WILL FLUCTUATE. YOU MAY GET BACK LESS THAN YOU INVEST.