Narrowing the knowledge gap for investors

Record-low interest rates are rarely out of the news these days. With UK investors struggling to achieve a decent income from traditional investment sources, it might however be good to point that less than half can correctly explain the term ‘income investing’.

A survey recently done by J.P. Morgan Asset Management revealed that while many investors know it’s important to generate income for their portfolios, surprisingly few know how to go about it. This is why seeking independent advice is important as your financial adviser will be able to do all the work for you but at the same time ensuring you know what is happening, why its happening and answering anymore questions you may have. What they also would be able to do is ensure that your put in the correct type of fund that suit you .

Lack of knowledge
With low yields, low rates and the new pensions freedoms, the hunt for income is now more pressing – and more challenging – than ever. Yet J.P. Morgan Asset Management’s income investing survey uncovered a striking lack of knowledge on this crucial area among UK investors. This is also another reason why you should seek independent financial advice, as you would be able to get more knowledge and understand of these areas but also help with moving forward in your investments.

A shocking 38% of UK investors are still relying on savings accounts as a source of income, even though this leaves them struggling to achieve inflation-beating rates of return on their hard-earned cash. For many of these investors, it’s time to take a step back and weigh up how to make their money work harder for them.

Complex challenge
In today’s low-yield, low-rate world, generating a stable, attractive income in retirement is a complex challenge. With traditional sources of income no longer delivering the goods, the income opportunity set has to be broader and more global than ever before. Risk needs to be carefully managed to prevent against the potential loss of future wealth. seeking independent financial advice from a financial adviser will ensure that your are at a lower risk of potential loss , the reason for this is because your financial adviser will keep an eye on your investments and the funds your in and let you know of any changes and if anything needs to be changed.

Potential for clients

Multi-asset income funds tick all these boxes. Designed to deliver strong risk-adjusted returns, these specialist funds give clients the potential to build and preserve wealth, beat inflation and reduce the risk of outliving their assets.

Combining a broad range of asset classes, multi-asset funds give clients access to a level of diversification that they would struggle to achieve when investing alone. They also balance the provision of sustainable income with the management of downside risk, while keeping a close eye on capital appreciation. Most are accessible, easy to understand and come without complex and expensive guarantees. They also tend to be flexible, tax efficient and cost efficient.

If you are located in Leamington Spa or surrounding areas and wish to seek independent financial advice on your investments , we at Hutt Professional have financial advisers with many years of experience with giving independent financial advice on investments who would be more than happy to offer you the independent financial advice you need.   So if you do wish to seek independent financial advice please do not hesitate to contact us.