Investment strategies for a summer of uncertainty
By Kirsten Hastings, 25 May 16
Summer 2016 will present a number of geo-political concerns for investors – the biggest of which is the run up to, and the aftermath of, the EU Referendum vote. Click through the slides below to see what Tom Stevenson, investment director for personal investing at Fidelity International, suggests investors can do to prepare themselves for a potential summer of volatility.
“One way to mitigate volatility in markets is to invest in a balanced fund. These funds attempt to smooth returns by combining a range of defensive and growth-focused assets.
“One example is the Fidelity Multi Asset Balanced Income Fund, which might suit relatively cautious investors looking for income during market instability. The fund holds an equal balance of lower-risk bonds and some higher-risk assets like global equities for greater growth potential.
“However, in more uncertain times, wealth preservation might be your ultimately goal. If this is the case, you may want to consider funds such as the RIT Capital Partners investment trust, which aims to generate long-term capital growth while preserving its shareholders’ capital,” Stevenson said.
His ultimate advice, however, is that investors should try to remain calm and look to maintain core investment principles, especially in an unsettled environment.
