IFA 17 - portfolio                                                                Ruth Allen/Ruthmedia

The current troubles in the world markets are causing headaches in all financial fields. Many new hard lessons are having to be learned.  One of the most prominent is the importance of constructing a balanced and diversified investment portfolio. 

"Depending on your personal circumstances and attitude to investment risk, your portfolio might contain cash deposits, bonds, gilts and property as well as equities," says Eric Warren of Warren Financial Services. "The portfolio will tend to change as your circumstances change. You may also decide that certain of your fund managers have 'gone off the boil'! Keeping track of a diversified portfolio has its own problems. Gathering information from all the different sources can be time consuming, and moving between investments can be expensive. Disposing of investments may also have unwelcome tax consequences." 

What is Warren's solution to this host of problems? "A number of new facilities have been developed in recent times, in response to the kind of scenario I've outlined," he says. "The best investment products - whether pensions, life assurance bonds or fund supermarkets - now operate on the 'umbrella' principle, with a wide variety of fund managers and asset classes under one roof. Where once the investor had the choice of around ten funds, all managed by the product provider, he or she now has the choice of hundreds of funds managed by specialists. The assets tend to be held in such a way that buying and selling can be done at a much-reduced cost. Unwelcome tax implications may also be avoided." 

In addition to the above, one of the main advantages, according to Warren, is that consolidated valuations can be produced quickly and accurately : "You can gain an overall picture of your financial situation at the press of a button. Armed with the appropriate passwords you can even monitor your portfolio on-line!" 

Choosing the best provider for your circumstances is not merely a matter of finding the organisation with the lowest charges, or the widest spread of asset classes to choose from. Of equal importance is the standard of service they offer in carrying out your instructions. Your independent financial adviser will be able to assist you in selecting a provider and constructing your portfolio so that it works to your maximum benefit. 

For further information call Eric Warren of Warren Financial Services on 01555 773462 or visit the company's website at www.warrenfinancial.co.uk.