Successful investment is critical to your future financial well-being. As a result, when you choose a fund manager, no matter how successful, you can never be sure that you have made the right choice.
What really matters to investors is the longer-term performance of their investments.
Having selected a manager to look after your portfolio you then have the task of monitoring their performance.
Most of us do not have the necessary resources to do this on a daily basis.
Unsurprisingly many investors have experienced poor performance, but because it is usually discovered long after the event, it is too late to rectify the situation.
The benefit of diversification is that it reduces investment risk.
Informed investors understand the need to spread their investments across all the major asset classes - cash, fixed-interest, equities and property.
A key issue for an investor or their advisers is, can they identify and select the best investment professionals from the global whole of market and then monitor them on a daily basis?
Clearly this is unlikely, but it is a necessary part of ensuring your investments are given the best opportunity to grow over the medium to long term.
So you need to reassure yourself that those who are entrusted with the management of your money, have been handpicked and are being independently monitored.
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