Should You Rely On Money Managers For Alternative Investments?

With interest rates at historic lows and inflation moving ever-closer, an increasing number of investors are turning to alternative investments for higher returns. However, with so many options, some investment-seekers are wondering if they should rely on a money manager for alternative investing advice or portfolio management.

The reality is that investing is a skill that can be learned. It would be arrogant of us to think otherwise. The main problem is time. Do you really have the time to do this properly? – Jonothan McColgan, Adviser, Combined Financial Strategies

• If you plan to build and maintain your own portfolio of investments, you should be very aware of what an alternative investment is, how to research and compare them, and how to buy them. This should be considered the basic pieces of knowledge needed to go it alone.
• If you choose to rely on a money manager or investment adviser, they should always be able to soundly justify their costs, as well as conduct an annual review. If an adviser handling all of your financial affairs is using “an investment strategy” as their main justification, it is a potential red flag.
• If you do not have a substantial amount of money to invest, the decision is likely made for you. If you have less than £50,000, many advisers will not accept you, or the fees are too high to justify.

Although no investment can do well all the time, DIY investors simply need to distinguish between when a good investment is performing badly because the economic cycle is against it, and when an investment is doing poorly because it is a bad investment.