19 October 2019
If you’re covering research from Cass Business School and University of Bristol on appetite to risk please see the following comment from David Gibb, financial planner at Quilter:
"Appetite to risk is one of the main ingredients to the investment element of a financial plan. Recent research from Cass Business School and University of Bristol confirm some trends that had previously been reported, such as women are less risk averse than men. However, some of the findings, such as young people being more risk averse seems to run counter to the criticism that young people are flippant with their money. Risk is obviously a tricky thing to stomach. When markets start to drop and you see the value of your hard earned cash plummet the knee jerk reaction is to pull out right away. However, risk is also powerful and it’s important, particularly at a younger age, to take on a certain amount of risk so that you can boost your longer term returns.
"Financial advisers are well equipped to help their clients navigate the world of risk and return and more than that help consumers to fight the behavioral urges that often lead them to miss out on returns. As volatility in the markets this will become even more vital as it can be tempting to exit the market or switch to cash to avoid risk and reduce further loss. However, it’s impossible to time the market and this could lead to missing out on the best days, which can have a dramatic impact on your investments.
"To put this into perspective, if you invested £10,000 in UK equities from 1993 to 2018 you would have £44,752. However if you missed the 25 best days that would drop to just £19,802. Even missing just 10 days and the returns drop to £29,932."
Kathleen GallagherExternal Communications Manager
If you are covering the Bank of England’s decision to hold interest rates at 0.75%, please find below commentary from Hinesh Patel, portfolio manager at Quilter Investors.
If you’re covering the Queen’s Speech please see the following comment on pensions and their social care policies from Jon Greer, head of retirement policy at Quilter: