The survey found that 54 per cent of Sipp investors opt for Sipps due to the increased control while flexibility to adapt portfolios to changing market conditions is a key element for 14 per cent and 17 per cent cite tax relief on contributions, tax-free growth, and tax-free lump sums. Eldon Financial Planning director Joss Harwood feels that the confidence of Sipp investors may be misplaced.
She says: “It is statistically impossible for nine out of 10 Sipp investors, as individuals, to outperform the market. It is also statistically impossible for all fund managers to outperform the market. A lot of it comes down to luck.
“We subscribe to the theory that a lot of effort is put into marketing the idea that luck is some sort of investment skill.”