Emma Simon
AUTHOR Emma Simon| CREATED 14 Mar 2016
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How an adviser helps… you deal with market volatility

It’s a fact of life that shares go up and down. But few people want their savings or retirement fund to be on the equivalent of the Big Dipper at Blackpool. 

If it’s too much of a white-knuckle ride, we’re likely to opt out altogether – which can leave us worse off in the long run.

A professional adviser can help you manage the inherent volatility of markets, so your savings have the best chance of growing for the future – without giving you sleepless nights in the process.

Mixing it up

One way an adviser can help you do this is by recommending a mix of different investments. It’s important not to put all your eggs in one basket – but it’s also important not to focus solely on eggs.

In the investment world that generally means having a portfolio that contains a mix of assets in, say, shares, bonds and cash.

Regardless of whether you’ve got £10,000 or £100,000 to invest, an adviser can recommend the most cost-effective way to achieve this mix – often through collective investments such as OEICS and Unit Trusts. 

Regular savings

Rowena Griffiths, a financial planner with Female Financial Management, says one of the best ways to deal with market volatility is to drip feed money into the market on a regular basis. “If you have a lump sum to invest but fear the markets will fall further, an adviser can set up a plan to help you move this money gradually into the market over a period of time.

“When prices fall you are then buying at a lower price,” she says. Over time this should help you get steadier returns and iron out the ups and downs of the market.

Don’t panic!

Too many people make investment decisions based on fear or greed. This emotional response rarely leads to sensible investment decisions.

An adviser can help you focus on more rational reasons for investing by looking at:

  • your circumstances
  • your long-term plans
  • your attitude to risk

Rowena Griffiths adds: “Most advisers spend quite a lot of time persuading clients not to cash in and make a loss. They can offer reassurance and a cool head.”

In this way an adviser can help ensure you aren’t taking too much – or too little – risk with your money.

Speak to your financial adviser if you want to learn more about coping with volatility. If you don’t have an adviser, you can use our find an adviser tool to search for a financial adviser in your area.



Emma Simon

financial journalist freelance

Emma Simon is an award-winning consumer journalist with 18 years’ experience writing about money, property, travel and business. She is a former personal finance editor of the Sunday Telegraph, deputy money editor of the Daily Telegraph and personal finance correspondent at the Press Association. She writes for a number of national newspapers, including the Sunday Times, Guardian Online and Mail on Sunday. She has recently written a guide to retirement for the Rough Guide series, and has put together reports and publications for major companies and consumer organisations including Alliance Trust, Fidelity and the British Bankers’ Association.