While it is acknowledged that economic growth and stockmarket performance are closely linked, there are arguments about their precise relationship. Despite recent reports on the subject, data to assess their precise correlation is not yet available.
The effects of the credit crisis and the forthcoming retail distribution review have inspired the fund management industry to come up with new solutions for investors to deal with the changing climate while interest rates remain at depressed levels.
Holding a mix of assets is a good strategy in a rocky market, although building a portfolio will depend on the investor’s attitude to risk and their horizon time. Funds with a range of commodities, bonds and equities will appeal to the cautious.
As yields from conventional sources stall, investors are looking further afield in their search for income and turning to a mixture of specialist asset classes with the aim of making the dividend stream more consistent and dependable.
While everyone accepts the principles of diversification, not everyone understands that by studying how funds interact with each other investors can further diversify and lower the overall risk of the portfolio, reaping stronger risk-adjusted returns.
Ever since AD600, investors have been cautioned to spread their funds in a range of assets. These days, it is even more important they adopt an active strategy to face the challenge of seeking returns in an uncertain investment landscape.
Is it time to take another look at commercial property?
Invest gave fund management groups the opportunity to offer their ideas on how and why investors should get active in the current environment. Some are showcasing specific funds, others their fund range as a whole. We hope it provides some thought-provoking ideas that advisers can take to their clients. Alongside these ideas are statistics and information provided by FE.