What are realistic expectations for investment returns?

We all want to get as much out of our money as possible, but it’s important the expectations are realistic. Research suggests that many investors are anticipating returns far higher than what the average investment can expect to generate. It’s a miscalculation that could put plans at risk. So, how should you calculate projected returns? The Schroders Global Investor Survey asked global investors what they would expect investments to return. It found:   Investors expected total annual returns, not adjusted for inflation, of 10.7% over the next ...

Seven signs an investment is too good to be true

When you invest, you naturally want it to grow as much as possible. However, the latest figures from the Financial Conduct Authority (FCA) show people are being sucked into scams in the hopes of achieving exceptional returns. In 2018 alone, investment scams cost victims £197 million in reported losses. The FCA noted fraudsters were increasingly using sophisticated tactics to encourage victims to invest and taking advantage of digital technology. While cold calling has been a traditional way for criminals to establish contact with potential victims, their focus ...

How should you react to uncertainty in investment markets

When you invest, there’s always an element of risk. The value of your investments can fall and it’s a process that’s influenced by many factors out of your control. In fact, trying to time the markets is next to impossible. So, if the value of your investments drops, what should you do? The market has experienced volatility recently. If you have an investment portfolio, it’s likely that over the last few months you’ve seen its value fluctuate. It may have been affected by economic and political factors, from Brexit negotiations ...

What should you consider when thinking about your attitude to investment risk

Your view of risk in finances is personal. It's one that's often influenced by emotions, but other areas should play a role too. When you're considering how much risk to take, what factors influence you? We all know that taking too much risk for your situation can lead to losses. However, so can not taking enough risk. Rising inflation means the spending power of cash is eroded. With low interest rates, many cash savings have lost value in real terms in recent years. Investment returns that don't keep pace with ...