Investment CLINIC

I RECENTLY spoke to my financial adviser about the uncertainty around the forthcoming EU referendum and whether I should change my investments.

He has suggested I move my Isa to the Prudential Growth fund, which returns 7.5 pc before charges. That seems a good return — why hasn’t he suggested it before? J. H., Stourbridge, W. Mids.

While it’s great that you are thinking about your investments on a regular basis, moving all of your money into a new fund at this point may not be the wisest choice.

The EU referendum is just over a month away, and opinion polls and experts change their minds every day about what will happen and what the outcome will mean.

Any professional will tell you that investing is supposed to be for the long term — think five years minimum.

Making decisions based on an unknown that is a matter of weeks away seems a recipe for disaster.

First, because there is no telling what will happen. And second, because there is no knowing what either a Remain or leave result will mean. While it is widely expected that banks and housebuilders could bear the brunt if there is a leave vote, it’s not a certainty.

Meanwhile, an exit from the EU could weaken sterling, which could provide a boost for the international players in the FTSE 100. But we don’t know for sure.

Picking funds and stocks on the basis of your predictions is more gambling than investing.

Perhaps your adviser is suggesting a new fund because your current investments are not performing as he had hoped or because this is a fund that has only recently come on to his radar.

it seems unlikely to me that a good financial adviser would urge a client to change his entire investment strategy based on the Brexit vote.

if you are worried, then one option is to take your money out of the market and keep it in a cash account for a few months.

it might not be earning much interest in that time, but at least it will give you the assurance that you won’t lose any money.

Alternatively, you could consider an Absolute Return fund.

The aim of these funds is to deliver a positive return regardless of what happens in the stock market.

They won’t double your money and there’s no guarantee of getting it all back , but it may provide some protection.

If you have an investment question, write to us at: Investment Clinic, Money Mail, Northcliffe House, Derry Street, London W8 5TT, or email: h.black@dailymail.co.uk