Five principles to find the right investment manager

At the recent Allan Gray Investment Summit, Rory Maguire the MD of Fundhouse's UK business identified five important principles to follow when selecting a unit trust fund:

Nobody likes making a loss, but allowing your risk aversion to determine your asset exposure is not always the best tactic. Instead, your investment risk profile should be a function of how long you have until you reach your goal. Any person attempting to beat inflation, is going to experience losses during an investment career.

"If you are going to sell every time the stock goes down, you will never win, anymore than a general who always retreats when the enemy advances." - John Train

Before making an investment, you should ask yourself five questions:

• What is the term of the investment?
• What is my growth objective?
• What is the benchmark for the investment?
• What is the maximum loss that I can tolerate?
• Do I understand the investment or is it like some mysterious black box that will hopefully make me money?

Our integrated wealthcare approach is based on your personal priorities and aspirations. This process is designed to give you a clear course of action for pursuing your goals that span various time horizons and life stages to empower you to do extraordinary things with your wealth, both now and in the future.

I look forward to talking with you again soon.

Regards,

Shane Thom, CFP^® GTP(SA)™
Managing Partner: Integrated Wealthcare Advisor