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Investing to get value for money
July 9, 2021

I don’t doubt for a minute that everyone but everyone wants value for money – that’s a given. Few people though would actually know what it was even if it hit them in the face. I would bet that most people would look at cost – to see if they could get value for money, but that is oh so wrong.

M A P is not the cheapest offering in the market admittedly, but please remember the old saying that you pay for what you get and you get what you pay for. If someone came to us looking to invest say £100k, then our standard initial charge is 3% and ongoing is 1.2%.

INITIAL charge allows us to do research on what funds to use and we would invariably use 10 funds putting £10k in each – and that starts you off with a good spread.

ONGOING – we review the funds that each client uses on a quarterly basis and will switch funds (with permission) if they are not performing as planned. It is this attention to detail that you are paying for.

Recent results over the last 6 months have shown growth figures of 11.4% up to 16% p.a. as we have given clients a good spread of investments and we monitor everything carefully.

Compare this to someone who has gone for a cheaper alternative of 2% initial and usually 0.5% ongoing, and I would bet that only one fund is used, and this is very rarely changed in any way. This is what they call passive investing.

Sample returns from the big insurers are around 5% or so p.a.

So you tell me what is the best value for money ?

To measure value for money – you need to see what you get back for your money – not just the cost.

The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Links to external sites are for information only and do not constitute endorsement. Always obtain independent professional advice for your own particular situation. Money Advice & Planning Ltd is authorised and regulated by the Financial Conduct Authority. For any enquiries, contact Andrew on 07957 836211 or enquiries@mapfinances.co.uk