Murray Round in the News on 19th March 2010
Thursday 25 March 2010
We do not like structured products. Essentially they are sold to investors who like the idea of security but want an extra return over cash. With deposit rates so low, it is understandable why structured product providers are looking to turn up the heat on the sale of these products.
We have yet to see how they benefit anyone other than the provider.
In the Daily Mail, Charlotte Beugge writes INVESTMENT EXTRA: A high price to pay for structure?
“Banks and financial advisers are selling millions of pounds of structured products. But how many customers fully understand what they're buying?
The basic idea of structured products is that your return is linked to an index, usually the FTSE 100.
In addition, most of those sold through banks also promise that whatever happens to the index, you will get your original capital investment back. Currently, Barclays, Santander, Legal & General and Aviva all have structured products for sale.
But there's a cost to having your cake and eating it. Firstly, you won't get all the return you could make from the market and, secondly, your money will be tied up often for more than three years, so if you want to get out early you might well lose cash”
Fortunately Charlotte asked our view….
Nic Round of advisers Murray Round summarises it: 'In my view there is never a reason for a client to buy a structured product. There's always a better way than investing in one of these plans.'
Think before you buy! In fact, don’t buy!
posted by Murray Round Wealth Management @ 14:43,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
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