Trustnet Magazine 93 March 2023 | Page 28

YOUR PORTFOLIO
DIY stockpicking

While professional investors should be able to comfortably beat the amateurs when it comes to stockpicking , there are times when the latter group has more than held its own

“ We often come across this , with the likes of BT , BP , the utilities and banks . The father or grandfather was given a discounted route into shares a long time ago , they ’ ve held them and , with the passage of time , have done reasonably well .” But he argues they may have been better off with a managed approach , rather than wrestling with calculations around scrip dividends , for example , as is currently the case with one client .
The exception to the rule Yet while professional investors should be able to comfortably beat the amateurs when it comes to stockpicking , there are times when the latter group has more than held its own . AJ Bell modelled portfolios based on its 10 most popular share and fund purchases from 2020 . It showed that the portfolio of most-bought shares marginally outperformed the portfolio of most-bought funds .
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