Investments  

Expected rate of return most important for investors

Expected rate of return most important for investors

Expected rate of return is the factor most people – 61 per cent – with £50,000 or more to invest consider important when choosing an investment provider, according to a survey by Minerva Lending.

The fixed rate bond provider also found that just under half – 49 per cent – of those polled said past performance was an important factor for them.

This put it in second place on the due diligence checklist for investors when choosing an investment provider.

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Ross Andrews, director of Minerva Lending, said: “Anticipated headline returns clearly carry a lot of weight for investors when searching for investment providers.

“Perhaps more surprising is that only half of the investors we polled considered past performance to be an important factor when choosing a provider.

“While some see track record as a fair gauge of future performance, for others the past is clearly in the past and has little bearing whatsoever on likely returns.”

The research also found two out of five investors said the ability to monitor performance and returns online was important to them.

The tie-in period of an investment, namely how long before people can access their money again, was considered an important factor by just under four in 10 active investors.

Meanwhile customer service levels were important for just over a quarter – 27 per cent – of  respondents.

For an investment provider to be ethical was considered important by just one in every 10 investors.

Dennis Hall, a financial adviser with London-based Yellowtail Financial Planning, said: "If you put 10 advisers in a room you will get 11 different answers about this.

"It is a view and all these things are important but suggesting one is the most important to think about is probably over-egging it and just a reason to get in the news."

damian.fantato@ft.com