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Title dylanbbd

Bydylanbbd

Investing money

I invested money for a client just 10 days ago, and this morning I received a frantic email that one fund had lost a lot of money – it was almost like a cry for help, so this showed that I had failed in my first task.

When you invest money, it needs to be for at least 3 years minimum, because you need that amount of time to cover charges and start making money yourself. Bear in mind that values of all units will fluctuate and in the short term they may very well fluctuate down the way – so you need to keep that in mind. My client, had only invested the money and was looking at things daily, and he wanted an explanation of why a particular fund fell on the day – well ……. I told the client that he needs to look at values say once a week – and not every day, otherwise he could give himself a heart attack. Investors also need to bear in mind that when you invest money it is not like a deposit account at the bank where you check in every so often to see how much you have gained. Investments do go down as well as up – and you should almost expect this to happen with most funds/shares – that is investing. When you see adverts for investments – the Regulator always gets a statement inserted saying that the value of investments can go down as well as up, and this is an attempt to stop the expectation that they can ONLY go up.

When MAP does any investments for clients – this is why we pick a range of funds, so that we can hope that any value falls are compensated by other funds where value gains. By taking a spread of funds you are attempting to reduce the risk, and just think how bad it would be if you had all of your investments in just one fund – and that went down. Well……

This is also why MAP monitors the funds that we use, because we identify the losing ones and instead of a knee jerk reaction on getting clients out of those funds as quickly as possible, we have look over something like 2 – 3 weeks and if there is no improvement, then by all means we look to switch those investments into other funds, but we take our time to evaluate and don’t just jump in.

We don’t do a lot of research to find out the best funds for our clients only to jump out of them at the first hint of trouble.

MAP does all the background work – so that you don’t need to.

 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    

Bydylanbbd

The MAP monitoring system

When MAP invests money for any client, it is not just a case of putting the money into a spread of funds and walking away – in fact it is the opposite of this.

When we invest a clients money, first of all it is into funds that are found to be performing consistently over the long period AND are still performing well over the previous 3 months.  And that is basically our work merely starting because we then have 3 ongoing monitors.

1. Every calendar quarter we produce what we call the Recommended Fund List and this looks at shortlisting those fuds that have a consistent half decent performance over the previous 5 years. We usually only take funds in excess of £100 million, and any funds we choose need to show a reasonable level of consistency, as we don’t want to pick a fund that is doing 20% today and minus 3% tomorrow. As we need to be able to “rely” on some kind of consistency, then we only use funds that are statistically consistent.

2. Every week, we analyse all the funds in the Recommended Fund List and we list the top 10 performing funds in each risk category from the statistics of the previous 3 months. This then gives us the confidence that a fund that has performed consistently well over the previous 5 years is STILL performing well in the short term – and so can be used, and by listing these in order of return – lets us invest in the best performing areas at all times.

3. In addition to the above 2 monitors, which focuses on funds, what we also do at MAP is analyse all funds performances over time as well.    It’s not too difficult to include fund ABC in your lists and it may be performing well over 5 years and maybe even over the last 3 months as well, BUT, don’t forget that in investing everything WILL change at some time, and you need to keep your eyes on things. So what I do almost daily is go into our investment platform and can list all the funds used, and keep my eyes on those funds showing a negative return.   I will monitor these for a few days and if no improvement, will then look to switch clients out of those funds and into other ones that are doing well.            

So basically, MAP does all the background work to get investments into the right funds and keep them in the right funds – even if it means changing them.  

MAP looks after our client’s money as if it were our own.

 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    

Bydylanbbd

How many funds I use for investing

When you invest any money, then you need to take into account:-

  1. What other areas you are going to invest in
  2. How much you are going to invest in other areas and how does this balance with the total approach
  3. When you invest in any fund, you always need to do your research, and if you invest in a load of funds – then that is a load more research
  4. Since you need to do your research regularly, then more funds means a bigger future commitment to research – and that costs time and money

From an early point when I started doing investments, I have always worked on some basic parameters such as the minimum to invest in any fund should be £5,000 and say a maximum of £50,000. On a number of occasions early doors when I invested less than this, I always found it very difficult to make money – hence why I always do a minimum now of £5k. Number of funds? I tried a few strategies early doors as well and came to the conclusion that 10 funds could give you a good spread without a heavy workload for maintenance, and that ticked most of the boxes.   

Remember of course that each fund will have its own investing process, but I would say that you can probably bet on them investing no more than 5% in 1 investment, so at the very minimum they are going to have at least 20 investments, and then if for example they have say £100 mn in their fund, you aren’t going to get 20 investments of £5 mn each, no it’s more likely to be a good bit more. Work on the basis that most funds will go for a reasonable spread of investments and have around 75 – 100 investments, and so if you therefore think that you start with 10 funds to invest in, then that could mean that you are investing in 750 to 1,000 companies – and that’s a good base spread.

I personally have used 10 funds for a while now, and it gives people a good spread of investments and doesn’t add that much to the workload, and that’s important because most people will start with the best of Intentions in terms of research, but after a period it becomes tedious.   Because it gives a good spread, it has always given me and my clients good results – and that’s what we are all doing this for. I have shown over a long period that 10 funds work well for everyone.  

M A P looks after client’s money as if it were our own.

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    

Bydylanbbd

What is a fund?

A Managed Fund is run by an investment manager and usually concentrates on something specific – whether it is UK equities, global equities, a technology fund etc. All the investments that they make will be along the same theme.

The investment fund will in many cases have a good spread of different companies it is invested in, and the majority go for something like 50 to 60 underling investments. Needless to say, the bigger the fund the more investments it will have.

If you are investing your own money and you pick company ABC Ltd then you are focussing on just one company which means that you need to do a lot of research on that company. On the other hand, if you invested in a fund, and that fund has 50 to 60 underlying investments, then your money will be better spread throughout those 50 to 60 companies and that will eliminate some of the risk.

If something goes wrong in one company, then in many cases it could be no big deal whereas if you only invested in one company on its own then that could be an enormous problem. By investing in a fund therefore you can accommodate one or two companies not working terribly well but balanced out by others that are doing well so you get a far better spread of risk.

This is why we invest in funds as opposed to individual companies. At MAP Finances UK our dedicated team support clients by managing your investments using our recommended funds list, whilst always allowing you complete transparency and oversight of your investments.

To explore investing, or indeed to discuss taking control of your existing investments contact us today.

The value of your investment is not guaranteed and can fall as well as rise.

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 call 0345 241 1808 or contact enquiries@mapfinances.co.uk

Bydylanbbd

2021 Budget Review

After a year of Covid-19 restrictions, the 2021 Budget had a lot of ground to cover. There has been considerable speculation over how the extra expense of the furlough scheme, funding the NHS and supporting those out of work would be paid for.

It was also questionable whether the current package of support for individuals and businesses could be sustained.

So what are the plans for recovering from the pandemic and rebuilding the economy? Read about the Chancellor’s budget overview in our latest publication, download it here.


If you would like to find out more information or would like to start investing today, please contact Money Advice & Planning Ltd on 0345 241 1808 or e-mail us at enquiries@mapfinances.co.uk.

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.