AXA Wealth believes there is a real opportunity for IFAs to raise investor confidence, with many investors confused with not only the market turmoil, but the added dilemma of low interest rates and rising inflation, knowing that there are many new investments that offer various protection features that clients could switch into.
AXA Wealth believes that advisers could use this opportunity to urge clients to look at the benefits of a range of products perhaps not considered before such as variable annuities, and protected or structured products that offer the potential for growth but with an element of protection.
AXA Wealth's call to action, follows new research* from the company that revealed that only 23% of adults have the confidence to take charge of their own financial decisions without advice, suggesting that independent financial advice is vital.
Following a turbulent summer that saw the FTSE 100 experience dramatic falls, the research conducted in August 2011 highlighted that market volatility has left investors feeling concerned over the security of their money and seeking honest and independent advice on the future of their investments.
The research also suggested that when asked to think about the current stock market volatility, one in four (25%)** of those polled with £50,000 or more in savings and investments are worried about the security of their money, and 16%*** who have £75,000 or more will be looking for some type of guarantee to protect their capital. But overall the majority (54%) of those with £50,000 or more feel the stock market is either likely or certain to outperform cash over the next 5 to 10 years.
Mike Kellard, chief executive officer, AXA Wealth says: "For those clients wanting to stay in the markets, many believe that there is great value to be gained and confidence can come from a number of options available for protection, with protector funds and variable annuities, and lower cost passive or high yield multi-manager income funds, as possibilities.
"It is clear that with interest rates on cash holdings close to zero, inflation close to 5%, and investor anxiety that there may be greater downside to investing in the current market than potential upside gains, this is arguably the very time for IFAs to demonstrate real value, and grow their reputations when investors are clearly most in need."
Further, additional AXA Wealth customer research**** highlights that regular communication with clients is the service most clients value from their adviser.
AXA Wealth offers an extensive range of products which advisers can offer to their clients. The Architas Multi Manager range aims to minimise risk by building a portfolio of complementary fund managers. Further still, AXA Life Europe offers solutions with guarantees through its Secure AdvantageTM Protected Capital and Lifetime Income range, which give consumers the potential to grow and protect their investment by locking in investment growth annually.
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