jackdusty22

jackdusty22

14 months ago I invested a sum of money through an IFA based at a leading bank. The investments were split into two funds, which I was told were low risk and moderate risk, not linked directly to the stock market. I have just received the latest update on these funds and because of the fall in the stockmarket I have lost 14% of my investments. I know you are warned of the pitfalls of the stockmarket but I thought the risk, has I have mentioned were low, I expected some loss but not this amount. Please can anybody explain how this situation has arisen, was I badly advised.

Ian_W

Are you sure it was an IFA?
AFAIK most, if not all, banks employ their own "advisors", "consultants" or whatever puffed up title they want to bestow on employees who are specifically there to flog you the banks own product range.

Without knowing which bank and what funds you've been flogged I don't think anyone can say but bear in mind that "low risk" isn't "no risk".

As you went to a bank rather than an Independent advisor who could have advised on a much wider range of funds from different providers you probably were badly advised but I doubt you were "mis-sold" - as the tied advisor only has to point you to the most appropriate ones they sell not tell you that some other provider might suit you better.

If you post more details I'm sure someone can help further and also it might be useful to change the title of the thread to reflect the nature of your query/problem rather than your user name - it may get more folks to read it.

dunstonh

Another person who thinks they saw an IFA when in reality they saw a tied insurance agent.

I have just received the latest update on these funds and because of the fall in the stockmarket I have lost 14% of my investments.

You said they were low and medium risk and not linked to the stockmarket. so how would the fall in the stockmarket impact on you?

I know you are warned of the pitfalls of the stockmarket but I thought the risk, has I have mentioned were low, I expected some loss but not this amount.

2007 was a bad year for low and medium risk investments. It was only the high risk end that saw gains. So, even if your spread is cautious, a 10-15% drop in that period is quite possible.

Please can anybody explain how this situation has arisen, was I badly advised.

You have told us nothing about your investment. So we cannot comment without knowing some facts. 14% loss is still in low risk territory. Tell us who you used, what product and what investments you have.

CHR15

A financial advisor gave a brief to a group of us (about 30) with reference to investments.

His take was that to invest in Stocks & Shares you really need to invest and forget about them for about 15yrs.

There will be lots of peaks and troughs but they will be peaking and troughing on a steadily upward trend.

He mentioned that over the last 40 years there has been scant few occasions where cash (In savings) has outperformed Stocks investments over a 15 year period.

His advice was to only invest in Stocks if you are prepared to forget about it for at least 10yrs. If you need it in less time, then put it in a savings account.


I am not arguing he is right....but he seemed to know his figures.