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Expected rate of return more important than past performance for UK investors


Expected rate of return is the factor most people (61 per cent) with GBP50,000 or more to invest consider important when choosing an investment provider, according to a survey by fixed rate bond provider, Minerva Lending.

Perhaps surprisingly, just under half (49 per cent) of those polled said past performance was an important factor for them, putting it in second place on the due diligence checklist for investors when choosing an investment provider.
Meanwhile, two in five (41 per cent) investors polled said the ability to monitor performance and returns online was important to them, underlining the need for investment providers to provide real-time dashboards and reporting in the digital age.
The tie-in period of an investment, namely how long before people can access their money again, was considered an important factor by just under four in 10 (37 per cent) active investors.
Perhaps surprisingly, customer service levels were important for just over a quarter (27 per cent) of respondents, suggesting hard numbers matter more for investors than the soft touch. Meanwhile, for an investment provider to be ethical was considered important by just one in every 10 (9 per cent) investors.
Ross Andrews, director, Minerva Lending, says: “Anticipated headline returns clearly carry a lot of weight for investors when searching for investment providers. Perhaps more surprising is that only half of the investors we polled considered past performance to be an important factor when choosing a provider. While some see track record as a fair gauge of future performance, for others the past is clearly in the past and has little bearing whatsoever on likely returns.
“What this research also reveals is that investment providers should not compromise on their reporting, but enable people to effortlessly monitor their investments. In the digital age, that’s key.”

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