Anyone been to an IFA and not been advised to buy Unit Trusts?

Linton

fairleads wrote: »

No. But even this method might be better than paying for poor/ biased advice from a person who has little practical knowledge of life and even less investment experience.

Might be as you can get it for free from internet forums. But not as good as paying for advice from someone who has experience and an understanding of investment and personal finance.

darkpool

Linton wrote: »

All the companies you mention some of which arent in Manufacturing together comprise about 3% of the FTSE100. That is just over half the value of BP on its own.

but there's no law that says you have to buy certain ftse100 companies. if you only want to invest in ftse100 manufacturers you can.......

darkpool

dunstonh wrote: »

So what do you do? Pick investments at random and cross your fingers hoping it will be ok?

it seems to be the investment method used by most fund managers... then if it does work out you get a lot of gullible people buying your fund because of your "skill"

darkpool

Meeper wrote: »

None of that process puts the consequences of investment decisions onto the client, so please, if you're going to spew such nonsense, at least try to back it up with something substantive instead of just churning out the same old yawn-worthy tat.

of course it puts the consequences of investment decisions onto the client. if the investment bombs it's the client that suffers the loss.

darkpool

Meeper wrote: »

I have spent many years in obtaining a high level of qualification.

as a matter of interest what is your qualification?

you still haven't managed to get round to posting evidence that the UTs you sell have the fund manager dealing costs paid from the TER. you don't have any evidence?

darkpool

gadgetmind wrote: »

I think they stand a good chance of medium/long term outperformance and am therefore prepared to overweight them. I'm also overweighting companies with good global/EM exposure, but I'm also going to be exposed to Europe, US, Pacific, Japan, and much more.

Look at a chart of which assets/sectors have done best/worst in each year of last decade and then tell me you can predict which will do best next year, and the year after.

I can't, you can't, and neither it seems can very well paid fund managers, which is a shame really as that's what people pay them for.

maybe EMs are the way to go, but i'm happy sitting on the sidelines. I think china has a lot of problems people don't realise, it has an overheating property market, environmental issues, a soon reducing workforce due to the one child rule. Not forgetting a political system that only works in a rising economy.

EMs seem to be like the japanese market in the 1980s, back then everyone thought the japs were going to take over the world. now look at their market.

5 years ago no one would have believed you if you had said that virtually every UK bank would be brought to near bankruptcy. It wouldn't surprise me if in 5 years time people reassess their opinions of EMs.

gadgetmind

Meeper wrote: »

The first question, for example, is "I have knowingly been extremely risky in my previous financial dealings" with responses ranging from "Strongly Disagree" to "Strongly Agree". The wording is simple, and the rest of the questions have similar simplistic concepts.

Garbage in, garbage out.

As a man of science, I have a grudging respect for psychology, particularly the "harder" aspects of the subject such as cognition, but at the soft end it all gets extremely "arm wavy". Attempting to represent an individual's attitude to risk as a one dimensional number is flawed as a concept IMO. Trying to do it by asking twenty questions is adding insult to injury.

I know you have little/no discretion when it comes to using this tool but do you honestly think the output is accurate precise, and useful?

BTW, even though Bernstein was a neurologist, his writings are notable for how little he discusses attitudes to risk, but his views on what he calls "risk aversion myopia" are well worth reading.

gadgetmind

darkpool wrote: »

maybe EMs are the way to go, but i'm happy sitting on the sidelines.

I'm happy sitting on every sideline, but I'm going to be slightly closer to the EM sideline than the Japanese one.

Meeper

gadgetmind wrote: »

Garbage in, garbage out.

As a man of science, I have a grudging respect for psychology, particularly the "harder" aspects of the subject such as cognition, but at the soft end it all gets extremely "arm wavy". Attempting to represent an individual's attitude to risk as a one dimensional number is flawed as a concept IMO. Trying to do it by asking twenty questions is adding insult to injury.

I know you have little/no discretion when it comes to using this tool but do you honestly think the output is accurate precise, and useful?

Why don't you read the whole story instead of picking up on the questions part? There are THREE elements to the risk profiling exercise. Tolerance (the questions), Capacity (the analysis of their assets, liabilities, income and expenditure) and Goals (the calculation as to their required return in order to meet their target x over period y). It's not about asking them 20 questions and then giving them a number, it's ........... oh, never mind. See post above for full explanation of how it works and the purpose of it. It's certainly not just "20 questions and you get a number".

Meeper

darkpool wrote: »

as a matter of interest what is your qualification?

FPFS, CFP.

you still haven't managed to get round to posting evidence that the UTs you sell have the fund manager dealing costs paid from the TER. you don't have any evidence?

I have no evidence for you that isn't in the form of confidential company documents which I'm not very inclined to post all over teh interwebz for people to see. My lack of willingness to post these documents obviously makes me untruthful.....

Why do people on an anonymous internet forum think that they know others? You don't know me, and you have no concept of how and why I do the things that I do. Bored with your nonsense, please enjoy your time on the ignored list.