90% Of Sipp investors think they can beat fund managers

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.”