Investors desperate for returns must be careful not to stray beyond their risk appetite in the current low returns environment, an investment specialist has warned.
Ben Peters, one of the investment directors for Evenlode Income, a UK equity income fund, said that people struggling to find returns should be careful not to dabble beyond their comfort zone in terms of risk.
He said: “People are looking for value and income but they just need to be careful about investing in appropriate funds. They do not need to go up the risk spectrum if they do not want to.”
He added: “If you are not a natural born equity investor because it is volatile, then you should think very carefully about stretching up the risk spectrum.”
Alan Solomons, director of London-based Alpha Investments & Financial Planning, said: “People have moved from bonds through to equities that generate a return of some sort and so on, but that has been going on for some time.
“This all depends on who you are and your investment life cycle and how you are going to hold an investment.”