ASK­THE EX­PERTS

WE ASKED A PANEL OF IN­DE­PEN­DENT FI­NAN­CIAL AD­VIS­ERS FOR THEIR TOP THREE SUG­GES­TIONS FOR LONGTERM IN­VEST­MENTS THAT WILL HELP TO GUARD AGAINST STOCK MAR­KET VOLATIL­ITY, AND THE REA­SONS BE­HIND THEIR CHOICES.

The Daily Telegraph - Your Money - - How To Weather Stock Market Storms -

Ben Years­ley, Har­g­reaves Lans­down

CF Mi­ton Strate­gic Port­fo­lio: This fund tends to have its best hour when all oth­ers around it are fall­ing. The fund man­ager, Martin Grey, takes large cash po­si­tions at cer­tain times, and 50pc is cur­rently in­vested in cash and fixed in­ter­est.

In­vesco Per­pet­ual High In­come: Neil Wood­ford has been man­ag­ing money for a long time and has been through many dif­fer­ent mar­ket en­vi­ron­ments. If there is one man to get you through a cri­sis it is Mr Wood­ford.

CF Mi­das Bal­anced Growth: The phi­los­o­phy of this fund is to pro­vide long-term cap­i­tal growth with re­duced volatil­ity through a com­bi­na­tion of as­sets.

Justin Mo­dray, Bestin­vest Bro­kers

CF Mi­das Bal­anced In­come: This fund aims to re­duce risk by in­vest­ing across global stock mar­kets, cor­po­rate bonds, prop­erty, hedge funds and pro­tected funds. The re­sult to date has been low volatil­ity.

Mer­rill Lynch UK Ab­so­lute Al­pha: This fund can ac­tu­ally ben­e­fit from stock mar­ket falls as the man­ager, Mark Lyt­tle­ton, is al­lowed to “short” stocks. This means he can use spe­cial fi­nan­cial in­stru­ments called de­riv­a­tives to gen­er­ate prof­its when the price of a share falls.

Morgan Stan­ley FTSE Pro­tected Growth 18: This guar­an­teed eq­uity bond of­fers in­vestors 160pc of FTSE 100 growth over six years with full cap­i­tal pro­tec­tion. If the in­dex has risen by 30pc or more af­ter three years the plan closes early and in­vestors re­ceive their ini­tial in­vest­ment plus 30pc. On the down­side they do not ben­e­fit from div­i­dends, but this type of plan is well-suited to ner­vous in­vestors.

Jus­tine Fearns, AWD Chase de Vere

CF Mi­das Bal­anced Growth: There has been a grow­ing in­ter­est in multi-as­set funds but Mi­das Bal­anced Growth is one of the bet­ter known and bet­ter per­form­ing funds.

In­vesco Per­pet­ual In­come Fund: Neil Wood­ford some­times takes a con­trar­ian view and in­vests in unloved ar­eas of the mar­ket, which can lead to short­term un­der­per­for­mance, but in the longer term it helps the fund.

Bar­clays Five Year Guar­an­teed FTSE Ac­count S6: This prod­uct pro­vides 100pc cap­i­tal pro­tec­tion, as long as it is held for the full five-year term. In re­turn for their five year com­mit­ment, in­vestors par­tic­i­pate in 120pc of any re­turn on the FTSE 100, al­though this does not in­clude any of the div­i­dends. It has a min­i­mum in­vest­ment of £3,000 and is open un­til Au­gust 31.

Dar­ius McDer­mott, Chelsea Fi­nan­cial Ser­vices

Schroder In­come Maximiser: This fund is de­signed to give an in­come of about 7pc and should out­per­form in neg­a­tive mar­kets.

Mer­rill Lynch UK Ab­so­lute Al­pha: This fund has the abil­ity to make money on shares that go down as well as those that go up. This gives it a good chance of mak­ing money in neg­a­tive mar­kets.

Multi As­set funds, such as HSBC Open Fund Global or New­ton Phoenix: Th­ese funds in­vest in a num­ber of dif­fer­ent as­set classes, which do not all go up and down at the same time, and hence try to give smooth re­turns.

Philippa Gee, Torquil Clark

T Bai­ley Cau­tious Man­aged: This is a multi-as­set fund in­vest­ing in cash, eq­ui­ties, bonds and prop­erty. This par­tic­u­lar of­fer­ing is a multi-man­ager fund, so you get the added bonus of ex­po­sure to a variety of un­der­ly­ing funds, op­er­ated from a spe­cial­ist in­vest­ment house.

F&C Multi Man­aged Dis­tri­bu­tion: An­other mul­timan­ager fund, but one where the al­lo­ca­tions are fairly fixed so that you have 30pc in eq­ui­ties, 20pc in prop­erty and 50pc in bonds and cash. This al­lows the team to con­cen­trate on choos­ing the right funds for each cat­e­gory.

New Star Tri-Star: This of­fer­ing in­vests in eq­ui­ties, bonds and prop­erty, tap­ping into the well-known New Star fund man­agers such as Stephen Whit­taker, James Gled­hill and Roger Dos­sett. It is not a mul­timan­ager of­fer­ing, so you keep all the money in-house and while you lose out in di­ver­si­fi­ca­tion, you can gain with lower charges.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.