Active v Passive – what’s what?

by Adrienne Lawler
July 2, 2019

Active Investing

Jupiter – actively investing for your future

Life will always bring some financial pressures and it is best to be prepared. Once you have paid off debt, and built a financial cushion for emergencies, it may be worth ensuring that the rest of your money is working effectively. Holding a large share of your savings in cash is relatively risk-free but it may not be able to generate sufficient long-term growth or provide an adequate defence against inflation. 

With that in mind, here are some points to consider, should you choose to invest: 

1) Know how much risk you want to take: The risk you are willing to take will depend on how comfortable you are with variations in the capital value of your savings, but also on your age, your overall level of wealth and how long you wish to invest. Understanding this could help you avoid some nasty surprises. 

2) Time in the market, not market timing: Investing over the long term, preferably across market cycles could help you achieve your investment goals. This is because the ups and downs of the market are generally smoothed out over time and therefore the longer you invest for, the less acute risk becomes. 

3) Diversification: Putting all your money into one specific stock, no matter how good it is, is usually unlikely to be an effective strategy. If you only invest in one stock and the price of it falls sharply, your overall level of wealth will fall too. It’s impossible to predict the future when investing but diversification – holding a range of different asset classes – can help to reduce your overall level of risk. 

4) Apply an active approach to achieve higher potential returns: At Jupiter, our managers’ core aim is to select the right combination of holdings capable of generating superior returns for your money, continuously researching and re-evaluating each holding to seek to deliver the best possible investment returns. Please bear in mind that past performance is no guide to the future. The value of investments and the income from them can fall as well as rise, may be affected by exchange rate variations and you may get back less than originally invested. 

Jupiter has been investing on behalf of clients for more than 30 years. Founded in 1985 as a specialist boutique with a strong performance-driven culture.

Our people are at the heart of our success. We believe that talented fund managers perform best if they are given the freedom to invest as they see fit, within their fund’s objective and investment restrictions. We allow our managers to follow their convictions, selecting what they believe to be the best opportunities the market has to offer over the long term, free from the kind of constraints that can often be imposed on them by an investment committee. 

Jupiter’s investment approach revolves around one concept: seeking to optimise performance over the medium to long term without exposing our investors to unnecessary risk. Jupiter’s fund range has been designed to meet a wide variety of investment objectives. So, whether you are looking to save through a tax-efficient savings scheme such as a Stocks and Shares ISA, or directly into our range of funds, you should find a product to meet your individual investment objectives.

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