Ever wondered why your returns from investing are never quite as good as you expected?
There is a reason, as a new free eBook called Monkey with a Pin by Pete Comley shows.
It describes how investors rarely make the ’5% above inflation’ return promoted by the finance industry (whether using funds or direct investing).
That is because it turns out that is just a theoretical number, from which you need to deduct a number of things including your costs. Therefore in reality, you may be lucky to even match inflation by investing in shares or funds.
Indeed the author claims that over the last 20 years, the average investor may have been better off just keeping their money in a Cash ISA in the building society.
Part I of the book looks in detail at reasons why investors underperform: poor skill, charges and survivorship bias. The second part turns to the implications for the private investor, the finance industry and regulators.
Monkey with a Pin encourages private investors to review their investing style and strategy to help them achieve better returns.
It is available for anyone to read and download for free at monkeywithapin.com, Google Books and Amazon Kindle.