Commenting on the Investment Association figures that show retail investors have withdrawn GBP3.5 billion from UK managed investment funds in June, Paul Killik, Senior Executive Offer and Partner at Killik & Co, says their experience has been the opposite.
Killik reports a higher inflow than out over this period, and the firm comments that the IA figures are not reflective of their own experiences. Killik says: “It can be lonely being a DIY investor. Without someone to act as a sounding board, it can be very tempting to follow the herd, in the belief that the herd know where they are going! It is not easy to act counter-intuitively; to buy when others are selling and to sell when others are buying, but such outcomes can come from a rational and unemotional conversation with a seasoned professional.
“Certainly, the costs involved in using a full service firm can be dwarfed by the amounts lost by investors through panic selling, or buying into a raging bull market. The world of investing is becoming increasingly complex, and it is now more important than ever to have professional guidance. An adviser can help put in place financial goals, establish a genuinely long term investment strategy and avoid the background noise that can spook investors, causing them to make rash decisions.”