Discipline is Essential
Maintaining discipline in extreme market conditions, both up and down, is never easy. All too often, investors let their emotions get the better of them with dire consequences for investment returns.
One study1 suggests that the average UK fund investor underperformed the broad market by 4% over an 11 year period.
Click on the video to hear Scott Bosworth of Dimensional Fund Advisors discuss how unchecked emotions can damage investment returns
Describes common forms of behavioral bias and discusses how these biases influence investment decision making.
This is unsurprising as the financial media sensationalises its reporting, causing investors to make poor decisions based on fear or greed rather than the principles of sound investment management.
Jessop establishes discipline at the outset with an investment education programme for clients, and subsequently implementing portfolio management with rigour and without emotion. Our discipline ensures that your portfolio is frequently monitored and that changes are made efficiently when required.
1Lukas Schneider 2007 – Are UK Fund Investors Achieving Fund Rates of Return?
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