Spring clean your investments portfolio, says financial adviser

Tue, 16 May 2006

Investment portfolios can accumulate cobwebs over time which leads to a "tail" of poorly performing products. Mark Dampier of Hargreaves Lansdown comments that, "selling is a much underrated activity… most people concentrate on persuading you to buy things".

However, being ruthless with your investments can be difficult, Hargreaves continues, as "people become too emotionally attached to [them], no matter how often financial advisers warn them not to". Part of the decision to cull old investments will be answered by the question of whether or not you are continuing to monitor their growth, or indeed whether they have been "tucked…away in a bottom draw and forgotten about".

Paul Ilott, of Bates Investments Services comments that many investors have, "recognised the value of phasing investments into the stock market", whereas comparatively few have "grasped the value of phasing your sales as well". By disposing of investments at regular intervals, it becomes easier to avoid "the dangers of making a poorly timed single exit".
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