It pays to watch your investments
Quite often, I have bought something from a big company safe in the knowledge that what I have bought will do what it says on the tin and if there are any problems, the company will sort it out.
Unfortunately, with financial products, our experience has sometimes been the complete opposite!!
Frequently we have seen funds run by major institutions, household names producing truly mediocre returns, well below the returns being projected.
The worst case we have come across this year is the CanLife Managed Series 1 fund run by Canada Life. In June when we first researched this fund on behalf of a new client, Mr B, who had been led to believe that his money was working well for him, we uncovered the 10 year compound average return was -2.89%.
His money has been going down by an average 2.89% every year for the past 10 years!!!!!!
This figure astounded us by being so dreadfully poor and it was made worse by having higher than average charges.
Mr B decided to take control and took our advice to build a very broad, well diversified portfolio.
On checking this Canlife fund today and can now report that the investment returns have performed slightly better, as this 10 year figure has now improved to -1.94% - still very, very poor!
The moral to this story is that money invested for the medium to long term cannot just be parked in one fund and left. Things have and will always change! Would you expect your car to run at its most efficient without being serviced?
The same applies to your investments. Contact us if you have any Canlife policies you want to discuss at advice@kassius.co.uk.
