Individual Investor Contact Us Careers United Kingdom Our Company Products Fund Views Insights Resources Search Home Investor Education Watching From the Sidelines Share WATCHING FROM THE SIDELINES Taking your money out of the market may seem like a safe idea, but it might take a bite out of your long term returns. In recent times, markets have seen levels of volatility which may have caused some investors to shy away from investing, potentially putting their long-term financial goals at risk. But, just as investors can be slow to recognise a retreating market, many also fail to see an upward trend in the market until it's too late - when they've missed an opportunity for gain. Missed opportunities like these can take a bite out of an investor's returns. Please remember, the value of investments can go down as well as up and you may get back less than you originally invested. MISSED OPPORTUNITIES Because many investment decisions are based on emotion, people may be prone to make irrational decisions during volatile markets. For example, many investors think they can predict losses, which is almost impossible. In effect, what these investors are trying to do is avoid the worst days, but in the process they may also be missing out on the best days. The table below is an example of what might have happened if an investor tried to jump in and out of the markets to avoid potential losses. By missing just a few of the stock market’s best single-day advances, you could put a real crimp in your potential returns. JUMPING IN AND OUT OF THE MARKET MAY COST YOU PERIOD OF INVESTMENT GLOBAL BONDS GLOBAL EQUITIES UK EQUITIES Stayed fully invested 48.31% 200.48% 138.35% Miss the 10 best days 10.74% 110.58% 61.24% Miss the 20 best days -6.61% 59.20% 19.32% Miss the 30 best days -18.52% 27.33% -9.34% Miss the 40 best days -27.98% 3.91% -29.13% Past performance is no guarantee of future performance. An index is unmanaged and one cannot invest directly in an index. Cumulative Total Return of Global Bonds as represented by the Barclays Capital Multiverse Index, Global Equities by the MSCI World Index and UK Equities by the FTSE All Share Index. Performance in GBP for the ten years to 23/09/19. GET OFF THE SIDELINES WITH FRANKLIN TEMPLETON INVESTMENTS By speaking to a financial adviser, you can discuss your investment options to get off the sidelines and put your cash to work, with a solution that's right for you. Franklin Templeton Investments has a range of funds which take a long term view, leveraging disciplined, time-tested strategies and assessing risk as rigorously as they seek reward. VIEW OUR KEY FUNDS INVESTOR EDUCATION Main Topics Introduction to Mutual Funds What is an ETF? Behavioural Finance Power of Perseverance When is the best time to invest? Market Volatility Watching From the Sidelines Glossary Templeton Maxims A Guide to Hedged Share Classes MORE ON INVESTING Power of Perseverance Learn more A different view of volatility Learn more When is the best time to invest? Learn more Important Information This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of any of the Franklin Templeton Investments’ fund ranges. Nothing in this document should be construed as investment advice. Franklin Templeton Investments have exercised professional care and diligence in the collection of information in this document. However, data from third party sources may have been used in its preparation and Franklin Templeton Investments has not independently verified, validated or audited such data. Opinions expressed are the author’s at publication date and they are subject to change without prior notice. Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. Franklin Templeton Investments shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. References to indices are made for comparative purposes only and are provided to represent the investment environment existing during the time periods shown. An index is unmanaged and one cannot invest directly in an index. The performance of the index does not include the deduction of expenses and does not represent the performance of any Franklin Templeton fund. FTSE™ is a trade mark of London Stock Exchange Limited and The Financial Times Limited and is used by FTSE International Limited under license. Investments entail risks. The value of investments and any income received from them can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator, nor a guarantee of future performance. Sources: Franklin Templeton Investments and Morningstar as at 23/09/19. © Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Issued by Franklin Templeton Investment Management Limited, Cannon Place, 78 Cannon Street, London EC4N 6HL. Authorised and regulated by the Financial Conduct Authority. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. United Kingdom Individual Investor This website is intended for residents of United Kingdom. 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