Investing in uncertain times
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Contents
Invest early
4
Beware of inflation
5
Diversify your investments
6
Invest for the long term (growth)
7
Invest for the long term (bull and bear)
8
Invest for the long term (market drawdowns)
9
Helping you invest in uncertain times
3
Your next step
11
Important information
12
Stay invested
10
The current economic conditions present financial challenges. However, history shows that getting financial advice and investing with a long-term outlook is key to achieving your financial goals. Here is your three-step plan.
Speak to a financial adviser and get some expert advice. They can help to put your mind at ease about whether you are doing the right thing. They can also help to take the emotion out of investing and provide an objective view. It may just be the best investment you ever make.
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Over the following pages we have put together some helpful charts and diagrams that demonstrate the benefits and advantages of a long-term, diversified approach to investing. Click here to download this guide.
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1. Get financial advice
Your money needs to be in the right place to recover in value and make a profit if markets go up, so it is important not to sell an investment as a knee-jerk reaction if its value goes down temporarily. it is vital to make a long-term investment plan, stick to it, and do not try to time the market.
2. Have a long-term financial plan
It is best to invest in a range of different places where your money has a chance to grow. You should always hold some funds in cash in case of an emergency, but other investments offer better growth potential. By spreading money across different investment types, it is possible to avoid exposing your portfolio to undue risk.
3. Make sure your investments are diversified
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Compound interest – earning interest on your interest – can have an incredible effect on your investments.
The chart below shows the benefits of investing as early as possible. Over the past 30 years, an investor could have accumulated £70,186 more than someone who started investing five years later, even though they both invested £10,000. If the other investor wanted to accumulate the same amount they would have needed to make an initial investment of £22,665.
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Total return, percentage growth over period 1 July 1995 to 30 June 2025. Based on an initial investment of £10,000 into the MSCI All Country World Index. This information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
Key takaways
Invest as early and as soon as you can. Grow your investments quicker by earning interest on your interest. Avoid withdrawing money to boost the effects of compound interest.
Return (£)
It is tempting to see cash as a safe haven against market volatility, but inflation can be very damaging to your investments.
The chart below demonstrates how inflation of just three percent can reduce the value of cash by almost half over a twenty year period. Inflation can be incredibly corrosive to any savings held in cash.
Inflation can be devastating to your savings over the long term. Holding your investments in cash does not provide any protection against inflation. Cash should only be held for an emergency or for short- to medium-term income purposes.
£6,730
£5,537
£3,769
Volatility is the extent and speed of change in the value of a financial security such as a bond or equity. The greater the movements in the price of a security, and the shorter the timeframe of such changes, the higher its volatility. The higher the volatility of an asset, the more unpredictable and extreme its price movements.
Inflation is the rate of increase in the price of goods and services. For most countries, it’s based on a basket of items that are assumed to represent the cost of living. Inflation increases the cost of goods and services but decreases the real value of cash savings.
Source: Quilter Investors and Morningstar as at 30 June 2025. This information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment.
By spreading your money across different types of assets, it is possible to avoid exposing your investments to undue risk.
The jumble of colours below – with each colour representing a different type of asset – shows how varied the performance of equities (company shares), bonds, and property has been over the past 10 years. There is no guarantee that the investment that is top in one year will perform well in the next.
Best
Worst
Return (%)
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Discrete annual return, percentage growth over period 1 January 2015 to 31 December 2024. Asia Pacific equities is represented by the MSCI AC Asia Pacific Index, cash by the Bank of England Base Rate commodities, by the Bloomberg Commodity Index, emerging markets equities by the MSCI EM (Emerging Markets) Index, Europe ex UK equities by the MSCI Europe Ex UK Index, global bonds by the Bloomberg Global Aggregate Index, Japanese equities by the MSCI Japan Index, UK equities by the MSCI United Kingdom All Cap Index, UK gilts by the ICE BofA UK Gilt Index, UK property by the IA UK Direct Property sector average, and US equities by the MSCI North America Index. The information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
Spread your money across a range of different investments to reduce risk. Do not assume that the past performance of an investment will reflect its future performance. Investing in a range of assets is likely to be more successful than trying to pick just one or two.
Equities are company shares. In most instances, except for private equity, they describe shares in listed companies that are traded on recognised stock markets. Being a shareholder confers a right to a share in a company’s profits that are distributed as dividends.
Bonds are fixed-income investments that represent a loan made by an investor to a borrower such as a government, company, or large institution. In principle, bond investors are lending money (the principal) to the bond issuer in return for a fixed or variable rate of interest (coupon) during the term of the bond. When the term ends (maturity), the issuer repays the principal to the investor.
Property, also known as real estate, is the term for investments in housing or other real-estate assets, such as retail sites and shops, office buildings, warehousing, logistics sites, and industrial premises.
Investing with a long-term outlook is the best way for you to reduce the impact of stock market fluctuations and to grow your investments over time.
The chart below shows that over the long term, there is an upward trend of returns from equities and bonds, despite the short-term volatility caused by major events. In fact, an investment into global equities could have grown to be worth more than 13 times its original value over the past 30 years.
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Total return, percentage growth over period 1 July 1995 to 30 June 2025. Based on an initial investment of £10,000. Global equities are represented by the MSCI All Country World Index, global bonds are represented by the Bloomberg Global Aggregate Index, and cash is represented by the Bank of England Base Rate. The information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
Do not let short-term blips distract you from your long-term plan. People who stay invested are more likely to see their investments recover. Investing over the longer term (five years or more) is more likely to be successful.
Cash
Cumulative returns
5 years
10 years
20 years
30 years
78%
3%
7%
Global equities
Global bonds
Click here to see the returns over different time periods
Source: Quilter Investors and Morningstar as at 31 December 2024. Total return, percentage growth over period 31 December 1994 to 31 December 2024.
75%
213%
599%
1,156%
-1%
17%
85%
334%
14%
43%
142%
Bull and bear markets are a feature of investing, but bull markets have typically lasted longer and returned more.
The chart below shows that over the past 30 years global equity bull markets (when an index rises by 20% or more from a recent low) have historically gone on for longer and delivered higher returns than bear markets (when an index falls by 20% or more from a recent high).
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Total return, percentage growth over period 1 July 1995 to 30 June 2025. Global equities are represnted by the MSCI All Country World Index. This information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
Bull and bear markets are a normal feature of investing. Bull markets have historically gone on for longer and delivered higher returns. A long-term approach to investing is the best strategy to achieve financial growth.
Markets often fall, and can do so sharply, but this does not mean they will return a loss for the entire year.
The chart below shows that while markets often have periods where they decline, the overall picture is far better. Over the past 30 years, an investment into global equities would have experienced a decline at some point each year, but would have ended the year down on just seven occasions.
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Discrete annual return and maximum annual drawdown, percentage growth over period 1 January 1995 to 31 December 2024. Global equities are represented by the MSCI All Country World Index. The information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
Investment markets often see blips throughout the year. Overall, global equities end the year up far more than they end it down. Staying invested is the best strategy for achieving long-term financial growth.
Source: Quilter and Morningstar as at 30 June 2025. Total return, percentage growth over time periods shown to 30 June 2025.
During periods of volatility it can be tempting to exit the market, but missing just a few of the best days can have a big impact on your overall return.
The chart below shows that someone who stayed invested in global equities over the past 30 years, could have received a potential return more than four times greater than someone who missed the best 25 days.
Time in the market is usually more successful than trying to time the market. Keeping your money invested means you can benefit from any upsides or bounces. Missing just a few good days can significantly reduce how much your investment grows.
Past performance is not a guide to future performance and may not be repeated. Source: Quilter and Morningstar as at 30 June 2025. Total return in pounds sterling over period 1 July 1995 to 30 June 2025. Based on an initial investment of £10,000 into the MSCI All Country World Index. The information provided is for illustrative purposes only and doesn’t represent the past performance of any particular investment. It is not possible to invest directly into an index.
We are dedicated to making sure your investment journey with us is as smooth as possible. Please visit our website at quilter.com for all the latest news, views, and portfolio information.
Your financial adviser is on hand to discuss anything related to your investment decisions.
If you are a financial adviser and want to find out more about our investment solutions, please speak to one of our investment directors on 0207 167 3700, email us at enquiries@quilter.com, or visit our website at quilter.com.
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Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of investments may go down as well as up and investors may not get back the amount originally invested. This communication is issued by Quilter. Quilter is the trading name of Quilter Investment Platform Limited, which also provides an Individual Savings Account, Junior ISA, and Collective Investment Account, and Quilter Life & Pensions Limited, which also provides a Collective Retirement Account and Collective Investment Bond. Quilter Investment Platform Limited and Quilter Life & Pensions Limited are registered in England and Wales under numbers 1680071 and 4163431, respectively. Quilter Investment Platform Limited is authorised and regulated by the Financial Conduct Authority under number 165359. Quilter Life & Pensions Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 207977. Registered office: Senator House, 85 Queen Victoria Street, London, United Kingdom, EC4V 4AB. Quilter uses all reasonable skill and care in compiling the information in this communication and in ensuring its accuracy, but no assurances or warranties are given. Investors should not rely on the information in this communication when making investment decisions. Nothing in this communication constitutes advice or a personal recommendation. This communication is for information purposes only and is not an offer or solicitation to buy or sell any Quilter portfolio. Any opinions expressed in this document are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or companies within the same group as Quilter as a result of using different assumptions and criteria. Data from third parties is included in this communication and those third parties do not accept any liability for errors and omissions. Investors should read the important information provided by the third parties, which can be found at quilter.com/third-party-data. Where this communication contains data from third parties, Quilter cannot guarantee the accuracy, reliability or completeness of the third-party data and accepts no responsibility or liability whatsoever in respect of such data. Published date: July 2025. QI 26736/28/12361
