One of the more infuriating things I have experienced in the financial services game is briefing advertising executives about financial products. They just don’t get it. They don’t understand why you can’t make claims about investment products similar to the ones that are regularly made about laundry products, such as the “whitest of the whites” or about a fizzy drink being “the real thing”.
No one can ‘predict” how an investment product is going to perform.
So, when I saw an advertisement last week headlined “Finally, a share fund with an airbag”, I immediately suspected that this was yet another case of an advertising guru not understanding their brief. The alternative scenario, arguably a little more scarier for someone who thinks they know something about investments, was that there really was some new investment technique that offered all the upside potential of a share portfolio, with no downside risk. As you can imagine, I had to find out more.