Half of those with deposit accounts are not happy with returns, new study finds
Published 19/04/2016 | 15:21
Did you know, just under half of us (47 per cent) have a deposit account – with an average amount of €32,000?
Amongst deposit account holders, 46 per cent feel their money is not working as hard as it could be – and over half are not happy with their returns. Despite the amount of money on deposit, less than half of Irish adults claim to have invested money previously.
There are several reasons people might be slow to invest. for example of those who haven’t invested, 35 per cent are unsure about what type of investment would suit them best and 27 per cent wouldn’t know what type of returns to expect. Among those who have invested, ‘Wanting my money to grow’ is cited as the main motivation for investing (78 per cent).
Mapping your future
Whether you’re saving for short or long-term goals, it’s always sensible to have some money on deposit, where you can access it when you need it. However, if your money is just sitting on deposit, it may not be working as hard as it could be. That’s where Irish Life MAPS, a range of multi-asset portfolio funds on Irish Life’s investment plans, could help you.
With Irish Life MAPS you can start investing with a relatively small amount of money or by using a lump sum or a series of regular amounts. Your money is used to invest in funds that buy assets such as shares, properties, bonds or commodities, which have the potential to grow at a faster rate than inflation.
This means the value of your investment has the opportunity to achieve significant growth and generate a higher return for you in the long-term. While investing aims to achieve higher returns than deposits, deposits are covered by the deposit guarantee scheme.
There are a range of Irish Life MAPS funds developed to suit the needs of different types of investor profiles – ranging from the Conservative to the Very Adventurous. For example, if your Investor Profile is “balanced”, the Irish Life MAPS Fund 4 could be right for you. As a balanced investor, you accept the fact that to get a good potential return on your money, you can expect to see some movement up and down in the value of your investments from time to time.
If you are more conservative and tend to lean across to the cautious approach when it comes to investing, then MAPS Fund 3 may be suited to you – this aims to have a significant proportion invested in cash and bonds and a lower allocation to assets such as shares and property.
In the know
For those who feel more experienced, adventurous or very adventurous, MAPS 5 or MAPS 6 may be best suited. MAPS 5 aims to have a relatively high allocation to higher risk assets such as shares and property.
MAPS 6 is appropriate for adventurous and very adventurous investors, those who take a very active interest in exploring investment options and have a detailed understanding of how stock markets work. MAPS Fund 6 aims to have a high allocation to assets such as shares and property, where the risk may be higher but the potential returns can also be greater.
Irish Life Investment Managers will manage these funds to the appropriate risk rating throughout. This means, for example, that Irish Life MAPS 3 will be managed to a risk rating of 3 and you don’t have to worry about switching your fund, if your attitude to risk doesn’t change.
Whichever fund you do decide to choose, with Irish Life MAPS your personal preferences and investment needs are the central concern. You will find that the right plan will be available to help you reach your target.
To discover your investor profile and discover the right path for you, visit www.irishlife.ie or talk to your Financial Broker or Adviser
Irish Life Assurance plc is regulated by the Central Bank of Ireland.
Information correct as of April 2016.