Page 32 - DIY Investor Magazine | Issue 39

Nov 2023 32
DIY Investor Magazine ·
In conclusion, the risks attached to cash and equities are different. And the returns attached to them can also change, as the experience of the last eighteen months clearly demonstrates.
As these risk-return dynamics evolve, the priorities of investors are also bound to change and the arguments for cash over equities may become more finely nuanced.
Nevertheless, it is important to remember that cash is far from a risk-free asset. Even at today’s best available savings rates, deposits are unlikely to maintain their value when inflation is taken into account.
Meanwhile, shares also carry risk, especially when held for shorter periods. But over longer periods, history suggests that equities offer investors a better chance of beating inflation.
Disclaimer:
For those investors looking towards the equity market in pursuit of inflation-beating returns, UK investment trusts represent a potentially appealing route to market. Schroders has a range of investment trusts that focus on specific opportunities, from UK or Asian equities through to European real estate, and from global innovation to social impact.
Benefiting from Schroders’ breadth of experience and depth of expertise in these areas, the investment trust range can deliver long-term results. We’re confident we have an investment solution that will resonate with you.
Click here to find out more about our investment trust range >
Third party data including MSCI data is owned by the applicable third party identified in the material and is provided for your internal use only. Such data may not be reproduced or re-disseminated and may not be used to create any financial instruments or products or any indices. Such data is provided without any warranties of any kind. Neither the third party data owner nor any other party involved in the publication of this document can be held liable for any error. The terms of the third party’s specific disclaimers, if any, are set forth in the Important Information section at www.schroders.com