You can still be active with your investments and have a long-term strategy
While the old adage that the best investment returns are made on a long-term basis has held true for many decades, this does not mean that you should not review your investments on a regular basis and make changes where necessary. A number of surveys in the past have shown that many people still retain substantial pension fund investments in underperforming funds which are not working for them. So what can you do?
A long-term investment strategy does not mean they cannot take profits in the short, medium or longer term or indeed crystallise losses and move on. There is no point in "flogging a dead horse" and sticking with a fund which has underperformed for some time in the hope that it will turn around. While we do not suggest regular switching between funds for the sake of it, you do need to be aware of any potential changes in investment strategy and investment returns from any of your fund managers.
You can keep a long-term strategy but adjust your investments along the way in order to try and position yourself for the future. Don't over switch your investments, but be aware of the performance of individual investments and individual funds.
Share this..
Related stories
Consumer confidence at 18-month high
UK consumer confidence rose in May to hit an 18-month high, according to Nationwide.The latest headline consumer confidence index published by the building society reported a nine-point rise last month to a balance of 99 â€" the highest level recorded since November 2005.Upbeat views about the health of the country's housing and employment markets appear to be behind the increased confide...
Read MoreUK Property Prices up 2.3pc on Average
The price of housing in the UK rose by 2.3pc from May 2011 to May 2012, figures from the Office of National Statistics showed. London experienced the largest hike in prices, rising 7.2pc, while improvements in the South East and East Midlands helped the UK reach the overall 2.3pc mark. This is in line with results seen in May 2010, with prices across the UK remaining fairly stable, apart from...
Read MoreRoyal Bank of Scotland accused of inflating mortgage profit margins
Royal Bank of Scotland today stands accused of inflating mortgage profit margins as the group announced a swing from a £1 billion loss in the first six months of 2009 to a £9 million profit in the first six months of 2010. Some experts in the mortgage market believe that Royal Bank of Scotland has increased the margin on various mortgage arrangements by as much as double that of their competitor...
Read MoreState backed banks accused of offering poor rates
The likes of Lloyds Bank and Royal Bank of Scotland today stand accused of offering very disappointing rates to UK savers and less than competitive rates to UK borrowers. This will dismay the UK government at a time when the UK economy needs further liquidity and UK consumers are crying out for more help. We have seen businesses and families struggling to make ends meet, and this is sure to have a...
Read MoreFSA to make lenders responsible for mortgage customer profiles
The Financial Services Authority (FSA) has today issued a statement proposing that future mortgage arrangements should only be entered into if the lender is convinced that the borrower will be able to afford the agreement in the long-term. Making lenders responsible for ensuring that borrowers are in a position to afford mortgage payments going forward may sound obvious, but is something of a sign...
Read More