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

Linton

DiggerUK wrote: »

Advisers do not assess the product risk, or even what the product is suitable for, the provider does.
It is quite clearly stated on the product description literature what the risk is.
It also says if it is suitable for capital growth, income generation, etc..

All of this is available to advisers, and is provided 'for the eyes of advisers only', i.e., not the punters eyes.
The punter tells the adviser what they have, and what they want. All the adviser then has to do is match things up. Easy money when you have the right authority.

The illusion however, is that the financial adviser knows about finance and the bigger economic picture...the reality is that all they know about is how to sell financial products and services.
..._

Complete nonsense.

All funds produce information sheets specifying what they invest in, past performance, objectives, managers name and record, fund size, and much else besides. Nothing secret - just look on the manager's website.

What they dont say is things like the fund's likely volatility means that it isnt suitable for widows and orphans or other people of a nervous disposition. It wont say whether the investment is appropriate for someone saving for a house deposit in 5 years time. It wont say that better areas for investment are available.

This is where the IFA's risk assessment comes in: how does the nature of the potential investment tie in with both the specific needs for the investment and the degree to which the investor will panic when the inevitible down-turn happens.

The second area of expertise which clearly many people dont have is the ability to put together a set of investments that are not all closely correlated. For example buying something that steadily but slowly increases coupled with another wilder investment can provide a behaviour that meets the requirements better than either investment on its own.

Real investing is a lot more complex than putting all your eggs in one basket having convinced yorself that you have found a guaranteed winner.

Meeper

DiggerUK wrote: »

Advisers do not assess the product risk, or even what the product is suitable for, the provider does.

Incorrect. The adviser assess the relative risk of the product and matches the product to the clients' requirements. Not only the product, but the underlying structure of the investment which is much more important than the product itself.

It is quite clearly stated on the product description literature what the risk is.
It also says if it is suitable for capital growth, income generation, etc..

So you would like to simply give the product literature to the client and say "it's all in there, read it for yourself", leaving them to it?

All of this is available to advisers, and is provided 'for the eyes of advisers only', i.e., not the punters eyes.

Incorrect. Every product has a Key Features Document and literature to explain the relevant points.

The punter tells the adviser what they have, and what they want. All the adviser then has to do is match things up. Easy money when you have the right authority.

Simple, right? If it's such a simple profession, I guess you're involved in it and making a good living? Or, in reality, it's not so lucrative and not so simple.

The illusion however, is that the financial adviser knows about finance and the bigger economic picture...the reality is that all they know about is how to sell financial products and services.
..._

I respect your right to have an opinion, even if it is incorrect. I am sorry that you don't have much appreciation or understanding of the process and that your past experience (presumably) has tainted your perception. But, the bottom line is that you're quite wrong. Of course, I'm not naive enough to recognise that there isn't a section of the adviser community who do simply flog products. But that sector is shrinking every month and will become obsolete in the very near future.

DiggerUK

Linton wrote: »

Complete nonsense.....

Meeper wrote: »

Incorrect.....

Such a lot of denial and waffle.
My post stands.

Now remind, me what is the advice to those in the trade; only show to 'appropriate people' as I remember it; but my memory ain't what it was.

gadgetmind

Linton wrote: »

the degree to which the investor will panic when the inevitible down-turn happens.

And boy do they panic! They also tend to ask everyone other than their IFA for advice when it happens, which is interesting. A few (friends, relatives and colleagues) have come to me for advice, and I always ask if they have spoken to their IFA about it. No-one has yet said "yes"!

I give the usual advice about not selling low, continuing to invest if possible, and to call their IFA to see if their investments need reviewing. OK, I'm pretty sure they don't need a review but the IFA needs to work for his money.

sweeneytodd

Coming in here is pretty much guaranteed to make you panic yet the assorted 'experts', trolls and suchlike will no doubt sleep the blissful sleep of the righteous;)

gadgetmind

sweeneytodd wrote: »

Coming in here is pretty much guaranteed to make you panic yet the assorted 'experts', trolls and suchlike will no doubt sleep the blissful sleep of the righteous;)

Maybe, but I'm also going to the pub for a skin-full, just in case.