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Investors urged to review stocks and shares portfolios ahead of ISA deadline

12 March 2009 / by Rebecca Sargent
Investors are being urged to review their investment portfolios to make the most of the current economic climate and its impact on the stock market.

According to research from Liverpool Victoria (LV=), 60 per cent of current investors have no plans to review their stocks and shares portfolio, despite the current economic climate and approaching ISA deadline on April 5.

The study also found that just 29 per cent of investors intend to put more cash into the stock market, despite the fact that 47 per cent believe that now is a time that will be remembered as a strong investment opportunity.

Commenting, Robin Willison, LV= financial advice director, said: "Given the continuing volatility in global markets, investors could be forgiven for not having courage of their convictions. However, we want to remind investors who have not used this year's ISA allowance that they will lose it forever if they don't invest before the deadline.

"Investing in the stock market is a decision for the long-term, and canny investors can shape their portfolio to match the level of risk they are prepared to take with their money.

"More risk-averse investors will probably want to spread their risk by investing across the range of asset classes, and this balance is most easily achieved through managed funds."

Market strategists at investment company Edward Jones agree that investors should be reviewing their portfolios to make the most of the current circumstances. Market strategist Kate Warne said: "Instead of guessing which way the stock market will move short-term, our approach is to build "all weather" portfolios."

Speaking of the investment opportunities presented by a downturn, she added: "Historically, staying invested has produced attractive long-term returns for investors, including past market declines similar to this one. Good returns followed past decades of low returns, as shown in the following table.

"By keeping your emotions in control, you can remain appropriately invested during the downturn and be well-positioned long-term for when the markets rebound."

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