Aegon’s analysis shows that £100,000 invested in a mixed investment fund of equities, gilts, cash and bonds prior to the crash would now be worth approximately £189,000. This represents an overall increase of 89%, with annualised returns of about 6.5% vs average inflation** of 2.3% over the same period.
Aegon also asked consumers how confident they were in the investment landscape ten years on from the crash. 45% said that they think investment risks are more elevated now compared to ten years ago. Half of those surveyed (52%) said that fear of another financial crash impacts the amount of risk they are willing to take with their investments.
Nick Dixon, Investment Director at Aegon comments: “When markets start to wobble, many people’s first thought is to sell but this natural instinct is typically the worst course of action. By staying invested you avoid selling assets at depressed prices and benefit from subsequent recovery. Trying to time the re-bound is notoriously difficult and most people will be better riding out the storm, particularly if their savings goal is decades away, typically the case with people saving for retirement. There are a number of headwinds facing the global economy and markets including rising interest rates and trade disputes, reflected in investor sentiment. However for those with a long-term view such issues should not be a barrier to investing. Accepting investment risk – including periods of loss – is necessary to achieve long term investment returns”
• Analysis by Aegon shows that an investment* of £100,000, would have seen a return of 89% ten years on from the financial crash
• This gain includes an initial 22% loss during the first 6 months until March 2009, after which there has been sustained recovery
• 37% of consumers surveyed said that they think investment risks are more elevated now compared to ten years ago
• Half of those surveyed (53%) said that fear of another financial crash impacts the amount of risk they are willing to take with their investments
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