23 October 2020
In early 2000 a couple of US academics published a research paper on decision making, and while the experiment was not investment focused, the lessons learned are nonetheless relevant.
Here’s the backstory.
One day, shoppers were offered a discount to tempt them to buy a selection of over 20 jams. The following day, only half a dozen were left on display but with no discount. While the larger display attracted more interest fewer people were inclined to buy the jam, even with a discount, when compared to the smaller selection, where more jam was sold. With too much choice and no direction, customers found the choices too daunting and too confusing.
Like the jam buying customers, investors too need direction and are often faced with too many choices. For this reason it is imperative to seek professional investment advice and it’s why we at Belvest implement our client recommendations using specialist Multi-Asset, Multi-Manager funds.
With a multitude of fund managers to select and asset classes to invest in, choosing (like too many jam options) can be daunting without directions and should be left to experts. For this reason we use investment specialists to select the best managers and the best asset classes to construct the best portfolios to match your expected outcomes and appetite for investment risk. By investing in multi-asset and multi-manager funds which meets your personal needs your investments are aligned with your investment objectives, and are monitored by Belvest’s Wealth Managers, without the stress of you having to making the decisions. Like jam, that’s pretty sweet.