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Platform investors should still diversify – Rplan

Platform investors should still diversify – Rplan

The risk appetite among self-directed investors appears to have risen, but Rplan chief investment officer Stuart Dyer has warned investments should still be sufficiently diversified.

Mr Dyer said self-directed investors using Rplan planned to invest more and showed greater appetite for risk.

But he warned investors should not forget to take measures against risk.

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He said: “Investors do need to ensure their investments are sufficiently diversified and in line with their true attitudes to risk.

“If they do not have a professional financial adviser then there are platforms available to help them achieve this.”

Investors’ intended investment choice in Q1 2015Percentage
Cash51%
UK equities24%
European equities7%
UK corporate bonds7%
Emerging market equities5%
US equities4%
UK sovereign bonds4%
Commodities3%
Japanese equities2%
European corporate bonds1%
European sovereign bonds1%
US corporate bonds1%
Emerging market corporate bonds1%
Emerging market sovereign bonds1%
Japanese corporate bonds1%
Do not know25%

Source: Rplan

Research among 1,123 UK adults carried out on behalf of Rplan in March 2015 revealed that 20 per cent of respondents thought their appetite for risk had increased from a year before, while 46 per cent said it had stayed approximately the same.

When asked where they would invest their Isa allowance before the end of the tax year, 51 per cent of respondents said they would choose cash.

This was the most popular choice, followed by UK equities, which was selected by 24 per cent.

According to Rplan, in the three months to the end of February 2015, 47 per cent of investment went into funds with a synthetic risk and reward indicator of six, while 26 per cent went into products with a rating of five.

This compared with 35 per cent invested in funds with a six rating and 29 per cent invested in those with a rating of five in the previous year.

The highest risk rating is seven.

Adviser view

Paul Coffin, wealth manager at London-based Capital Financial Markets, said: “Perhaps it demonstrates increased confidence in the economy as well as in people’s own finances. It is good to see some positive news.”