Thursday 13 June 2019 6:33 am
Holly Mackay, chief executive and founder of boringmoney.co.uk, says NO.
Over four million people in the UK manage their own investments. But eight out of 10 people rate their confidence in choosing a fund at six out of 10 or less. We need and want validation and help. Adding to the headache are the 33,000 investment funds in Europe – all tooting their own horns about how wonderful they are. It’s a nightmare. Filtered, shorter recommended lists are essential.
About a third of DIY investors’ money last year went to funds in best-buys list. With great power comes great responsibility, and they obviously need a rethink when it comes to oversight, scrutiny, and justification. Also, the finance industry is awful at telling stories and using digital and visual assets to explain and highlight need-to-know information. It’s time for them to up their game.
Best-buy lists need to be better communicated, probably independently scrutinised, and clearer about what they are trying to achieve. But they are fundamentally important – they are seen as promises of quality.
DEBATE: Should we get rid of best-buy lists for investment funds following the Neil Woodford scandal?
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