Mis-sold Managed Portfolio

| Investments

Since managed portfolios contain several types of assets that you can invest in, as with any type of investment, there are inherent risks.

Some of the key indicators that you may have been mis-sold a managed portfolio include:

  • If you were not made aware of those risks
  • If you were not updated regularly on the state of your portfolio
  • If your financial advisor or portfolio manager didn’t take into consideration your investment experience, risk tolerance, or financial plans for the future, etc.

If you see yourself in any of these scenarios, you might have been a victim of financial mis-selling and could be eligible for compensation. Read on to find out more.

What is a Managed Portfolio?

The logic behind getting an investment portfolio (i.e. a collection of assets, such as stocks, bonds, mutual funds, etc.) is that it’s better not to put your all eggs in one basket. 

With managed portfolios, all of these assets are managed by your personal portfolio manager, and they may even come prepackaged (i.e. ready-made).

A portfolio manager, or investment manager, can then manage your portfolio for you so you don’t have to worry about it. 

The Pros and Cons of Managed Investment Portfolios

The pros of managed investment portfolios boil down to the fact that they’re diversified and that someone else manages them for you. The main drawback is that investing also entails a great deal of risk.

The most commonly mentioned benefit of an investment portfolio, managed or not, is that it’s diversified. The nature of a portfolio is that it contains different types of assets in which you invest, thereby minimising the risk of losing all of your money should you invest in only one type of asset.

Managed portfolios come with the possible gains of investments without the hassle of having to decide what to invest in, whether to invest in active or passive funds, how much to invest, when to sell, and so on. 

Quite often, they come prepackaged. They are then known as ready-made investment portfolios. Sounds great, right?

As with any investment, its value can go down as well as up. This means you might get back less than you invested.

How Do I Know if I Was Mis-sold a Managed Portfolio?

If things were left unclear or if you were left unsure of what you were investing in and especially the financial risks that would entail, you may have been a victim of a mis-sold portfolio.

When you were deciding on a managed portfolio or just talking things over with your financial advisor, the expert in question should have warned you of the risks of investing, as well as the benefits, and associated costs.

You should have discussed some, or ideally all of the following questions (or some variant) with your financial adviser before making your decision. Were you asked:

  • What your risk tolerance was?
  • If you had any previous experience with investing?
  • What your financial plans were for retirement?

You may also want to take into consideration if you were updated regularly by your portfolio manager and if you were iinformed of how your investments might impact your taxes.

While some portfolios might simply perform poorly, this doesn’t necessarily mean you were mis-sold a portfolio.

If your financial adviser hadn’t given you advice appropriate to your risk preference, income levels, investing capabilities, and plans for the future, this all could point to a mis-sold managed portfolio.

How Can I Make a Claim?

At Return My Money, our team of investment experts can help you get back the money you would have otherwise saved, or perhaps even gained – as you had intended. We work on a no win, no fee basis and will do our best to get you the compensation you deserve.

In just two easy steps, we can help you make your claim.

  • Contact our friendly experts for a free no-obligation assessment of your pension.
  • Return your claim form to us and we will deal with everything else.

We’ll keep you updated as we deal with your hassle-free, secure claim.

Mis-sold Managed Portfolio FAQs

If you’re found eligible to claim for a mis-sold managed portfolio, then you can easily make your claim. At Return My Money, this is a simple process in which you fill out our claims form and we take care of everything else for you.

The primary advantage is its flexibility and diversity – you can invest in different types of assets and in varying amounts. You also don’t need to have much knowledge or money to get started, as the portfolio manager does the work for you.

As with other investments, managed portfolios carry the risk of varying market prices, varying interest rates or even exchange rates (if you’re investing in a foreign currency), credit risks (in the case of bonds), the risk of inflation, and in the case of retirees especially, the longevity risk (i.e. outliving your investments). There may be other risks as well, depending on the type of asset(s) in which you choose to invest.