Far from sweating about the trials and tribulations of the stock exchange, it has been revealed that 22% of investors in stocks and shares fail to monitor the performance of their holdings.

Financial group the Prudential conducted the research which showed that over one in five people never check the progress of their stocks and shares. What’s possibly more worrying is that 65% of investors don’t seek any professional advice prior to investing in the stock market.

And figures extrapolated by the Pru found that 36% of UK adults aged over 18 (equivalent to 17.23 million people) have invested in the stock market over the past ten years. However, more than half (53%) of these investors admit they only check share performance every six months, or less frequently, with one in five (20%) saying they only review their stock performance once a year and 22% admitting they never do.

What’s more, UK adults appear to be equally apathetic with around two thirds of investors (65%) saying they rely on internet searches or media reports when selecting which shares, or investment fund to buy. And just 16% seek out an independent financial adviser, with 4% consulting a stockbroker and 10% gaining advice from bank, or building society staff.

Interestingly though state the Pru, whilst many stock market investors seem far to casual about their investments, they are at least exposing themselves to an asset class which has historically shown some of the strongest growth. This sits in stark contrast to the rest of the population with around 30 million UK adults (64%) having made no stock market-based investments in the past ten years.

Trevor Cheal, Retirement Savings Business Director, Prudential said: “While not everyone is fortunate enough to have spare funds to save or invest, many people do and it is staggering how few are seeking financial advice or looking to capitalise on the growth potential that the stock market has historically offered.

“Those who invest in the stock market have taken the first important step towards benefiting from the long-term growth of the economy, but they stand a greater chance of maximising its value if they re-evaluate their investment arrangements regularly. However, in volatile markets, investors may not want all their eggs in one basket and multi-asset funds which provide diversification can give them some degree of comfort while still having exposure to the stock market. Those who feel they lack the knowledge to manage a diversified portfolio should consider getting professional financial advice from a stockbroker or an IFA.”

So the message is clear, if you do own stocks and shares, just check occasionally that the company is still around.

Guest Article by Neil Camp

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