14 January 2014

Buyer beware! Investor beware!

Any situation where investment advice and investment execution are in the hands of the same firm an investor deals with creates conflicts of interest. If an investor wants to follow his own opinions he should do business through an 'execution-only' broker, preferably an online broker. Alternatively, the investor should give full discretionary authority to the investment manager of his/her choice and let them get on with it. Careful scrutiny of past performance records (documented and fully audited) is essential as is regular monitoring and benchmarking or performance.