When looking around for an investment, how many people gauge an index tracking investment as carrying a degree of risk?
A recent survey conducted by Standard & Poors revealed that investors see index tracking investments as cheaper, easier and lower risk than other investments.
What people do not realise, especially in times of unsteady markets, is that an index tracker does just that - track the index.
For example, an investment that tracks the FTSE 100 index will be invested to match the performance of that index, both up for profits and down for losses.
A tip for investors - Always look at what you are buying. Just because an investment is cheap doesn't necessarily mean that there is no risk attached to it. Always check the downside of what you are buying and seek professional, independent advice.
Contact us if you need help or advice.