INVESTMENTS! – Active versus Passive or Active and Passive.

Some Advisers have debated long and hard whether Active or Passive Investing is better in the long term.

In more recent years, the passive advocates’ voices have been heard loud and clear but this of course misses the point that there remains a number of hugely talented fund managers who have managed to beat the market, some by a significant margin, over time. The key, of course, is being able to find them.

I am fairly agnostic in this debate and believe that it is important to give clients the choice of both active and passive solutions while at the same time sticking to my mantra of Diversify, Diversify, Diversify, and matching whatever portfolio is best for the Client in terms of his or her Risk Profile at a reasonable cost.

I try to give my clients a balanced view on both sides of the argument and allow them to make an informed decision on choosing one strategy against the other.

There is of course a third way and that is blending the two strategies to give a good mix and using the investment house’s expertise in choose which funds should be actively managed and which should be passively managed. That choice is not set in tablets of stone and the blend is open to movement between both strategies depending on circumstances.

Of course like all investments, past performance is not indicative of future performance and the value of investments may go down as well as up. Also, the income generated by investments is not guaranteed and may fluctuate. Lastly you should be aware that you may receive back less than the amount that you invested.

If you would like more information, on this subject ( or any other, for that matter ), please feel free to contact us. A no obligation meeting is available should you wish. And I’ll buy the coffee!