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90% Of Sipp investors think they can beat fund managers

Nine out of 10 Sipp investors believe they can outperform professional fund managers, according to research by Barclays Stockbrokers.

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.”


FSA still undecided on mortgage regime

FSA chairman Lord Adair Turner says the regulator is yet to decide whether it will restrict loan to value and loan to income limits as part of its regulation of mortgage products.

The pace race

I have been reading some interesting statistics on investment management, courtesy of the Securities & Investment Institute. The latest edition of the SII’s Investment Management Review shows the total amount of money in financial assets worldwide at the end of 2006 (the latest figures available) was $167trn – a staggering figure. This statistic comes from McKinsey & Co but the SII trawls data from a range of sources.

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


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