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By: Sam Instone

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January 31st, 2017

2 ways to improve your investment returns significantly

Investment

[Estimated time to read: 2.5 minutes]

Q: What have travel agents, manufacturers and insurance companies got in common?

Clue: It’s something that affects black cabs and hotels too…

A: They are all traditional industries being disrupted by technology and the sharing-economy.

There was one industry I deliberately left out of the above list…

Financial services.

Disrupters bring positive change

Those affected by the disruption of their industry may complain, but positive change delivers better results

Nothing else matters to the consumer or client.

In financial services, there are two distinct disrupters that could potentially improve your investment returns significantly.

1. The robo adviser:

As an online wealth management service, a robo adviser is an automated, algorithm based portfolio management tool, directly accessible to any investor.

Robo Advisers

Robo Advisers

Most are investment platforms that recommend a portfolio of passively managed funds based on your answers to an online questionnaire.

They can be a low-cost, suitable alternative to a financial adviser for those who have straightforward financial planning needs and goals.

According to estimates from Citigroup, global assets managed by robo advisers could reach $5tn in the next 10 years as investors become increasingly comfortable with digital investing.

Could a robo adviser benefit you?

If:

  • You're looking for growth and low costs;
  • You’re relatively new to investing or don’t have time to manage your own money;
  • You’re looking for a return that matches your personal appetite for risk;
  • You don’t have a particularly complicated financial situation; or
  • You’re want flexibility, no lock in periods and no exit penalties…

The answer is potentially “yes”learn more.

2. The passive fund:

Assets under management in passive funds have grown 230% since 2007.

As most robo platforms direct investors to passive portfolios too, so the growth of the robo-adviser is seeing assets under management in passive funds continue to grow rapidly. 

Because passive is about low cost, index tracking, evidence based investing, it positively changes the returns investors can achieve when compared to actively managed alternatives.

Active versus passive investing

In fact, according to David Blake, Professor of Pension Economics at CASS business school:

“The evidence shows that 99% of fund managers deliver negative value added for their consumers when you take into account the fees that they charge.”

Could a passive approach benefit you?

Unless you’re in the 1% of investors achieving consistent positive gains from an actively managed portfolio, the answer is potentially “yes”learn more.

How to positively change your financial returns

As disrupters have taught many industries already, doing the same thing over and over again and expecting a different outcome will only lead to failure. 

Therefore, to achieve positive change you have to adapt and do things differently

If you want a better outcome for your finances, choose positive change:

Low costs not high fees
Passive not active
Transparent not opaque
Profession not industry
Service not sales
Specialist not generalist
Client first not adviser first
High returns not excuses
…next generation instead of last generation…

Positive change

Because you should accept nothing less than the best when it comes to your money, discover exactly how to positively change your own portfolio with a free, independent review of your current holdings.

  • Where there are costs that can be cut, you’ll be told how to cut them.
  • Where there are higher returning alternatives to your current savings, pension or investments, you’ll be shown each one available.
  • Where there is any way to improve your investment returns, you’ll be given all the information you need to positively change your financial position.

Put yourself first – because your success matters – request your free-and-obligation-free review now, and begin positively changing your financial fortunes today.

Request your free X-Ray Report

About Sam Instone

Sam Instone, CEO at AES International, is passionate about positive change and ensuring expat investors get the best results.

  • Connect with Sam Instone