Question: I have inherited a reasonable share portfolio from my family and would like options as how to best capitalise on this.
Stephen Hill of S Hill & Co Investment Advisors replies:
Traditionally, many clients would have approached a stockbroker to manage their share portfolio and indeed your inherited shares may well be managed in this way.
No matter what company manages your share portfolio, it is essential to make sure that you are receiving timely, relevant expert advice at a competitive price. Despite the current recession and the inevitable impact it has had on the stock market and investments, there is still a high share ownership in Northern Ireland.
However, in these days of instant online access to financial information there are many in the financial world who consider stockbrokers as the shape of things past; rather than the shape of things to come.
The way ahead now are companies who offer bespoke investment management services and it’s something that we are now advising clients to consider as an alternative.
Investment management companies are more competitive on management fees and have greater resources in market analysis and investigation.
Typically, stockbrokers may invest in individual company shares whereas investment management companies would often invest in collective funds with 70-80 companies in a single fund. This offers greater flexibility and diversification and can potentially lower the risk profile of your investments.
As always, an investor needs to consider his or her attitude to risk and seek independent financial advice before making any major changes in their finances.