Research shows Investments Give Better Return on Investments than Cash Savings

Jun 16, 2017 | Savings


Never Underestimate the Power of investment

New research carried out by Fidelity International has highlighted the power of investing in the stock market compared to cash savings. The research highlighted that over a period of thirty years, an actively managed fund of £10,000 invested in 1986, netted a return of £121,466. Over the same period cash savings gave a return of £28,196.

The research is based on investing in the FTSE All Share. Had the money been invested in FTSE 100 it would now be worth £126,867, while the FTSE 250 would be £265,035. The research also highlighted that should the funds be actively managed by professional fund managers and financial planners, you could receive a return on investment of around £400,000.

Tom Stevenson of Fidelity said:

“If anyone is unsure about the benefits of investing in the stock market over stashing cash under the mattress, especially over the long term, then our calculations highlight just how rewarding investing can be.

“On a 30 year time horizon – a realistic investing timescale for many people – simply investing, holding on and reinvesting dividend income can lead to really impressive returns.

“With interest rates at record lows and looking as if they could fall further, the adage that cash is king really doesn’t hold much water these days.

“UK savers looking to achieve decent long term returns really need to be looking further up the risk spectrum, investing in the slightly riskier bonds issued by companies rather than governments or moving into stocks and shares.”

Although research carried out by former BBC journalist, Paul Lewis concluded the opposite was true, his research was based on comparing cash savings against a tracker fund. In this instance the cash savings did beat the tracker fund. The research was also based on a twenty year, rather than thirty year investment.

The Secret of Good Investing is Good Financial Planning

The new research and the previous research show that to get the most out of investments they need to be planned and managed by financial professionals. Starting early is key to take advantage of compound interest. As you can see the returns are greater. Imagine what you could do with £126,000 or more.

To get the best return possible for your investments click here and complete the CALL BACK SERVICE form. My award winning financial planning know-how will make your investments perform.

Source: Daily Mail

For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]


Schedule a call at a
time that suits you


To receive our regular updates


Get in touch anytime