Opinion is divided as to whether equity markets will rally or decline further in the New Year, says market expert Surrenda Link.
Whatever happens to the FTSE 100, there will be consequences for the housing market. A rally in share prices could take investment cash away from buy-to-let. But if advisers cannot predict the bottom of the equity market, then an alternative investment vehicle with a proven track record is an option worth further investigation.
Despite the overriding predictions of gloom, Surrenda Link says it is possible to find investments that continue to perform well in a volatile equity market. The Surrenda Link Investment Fund continues to offer investors the benefit of a £35 million fund that combines lower than average risk with higher than average growth.
The FTSE 100 would have to rise by almost 60% to match the growth of SLIF since it's inception in November 1999. The fund's smoothed structure and diversified asset base – including property and traded endowment policies – has produced 25% growth since its launch. In the same period, the FTSE has fallen by over 30%.
Matthew Roche, marketing manager at Surrenda Link, says: “The combination of property and TEPs creates unique and attractive investment characteristics. First, they have both produced similar returns over the last five years and secondly they follow different market cycles creating a low volatility investment.
“Irrespective of the performance of the FTSE 100 in 2003, we envisage the TEP funds we advise continuing to provide above average returns.”