Why Investments Have to Move with the TimesThe world of investment is full of aphorisms, many of which are attributed to Warren Buffett.‘Be fearful when others are greedy and greedy when others are fearful’ and ‘price is what you pay, value is what you get’ are just two of the Sage of Omaha’s most widely quoted lines. ‘Sell in May and go away’ has been around even longer than the chairman and former CEO of Berkshire Hathaway, but what about ‘set and forget’?Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)In a recent article, RBC BlueBay suggested that longer lifespans are prompting a change in what investors need from capital and that a completely hands-off investment approach can lead to disappointing outcomes.Despite various treatises on the great wealth transfer, the fact remains that in the US, baby boomers (the demographic cohort born between 1946 and 1964) still control more than half of the nation’s wealth.The theory here is that the decision not to act can be as consequential as any trade and that remaining active is less about trading frequency and more about sustained oversight, recognising when underlying market dynamics change and ensuring that allocations continue to reflect long-term objectives.Interesting read: Saxo CEO Says “Most Traders Are Short-Term Greedy and Long-Term Stupid”Mike Reed, RBC BlueBay’s head of global financial institutions, suggests taking a strategic approach to active investing, searching for longer-term value shifts in markets and looking at where valuations become misaligned with fundamental outlooks.In this context, activity is less about speed than sustained attention. Reed describes it as identifying meaningful dislocations and being prepared to wait while they correct, an approach that draws on balance sheet analysis as well as political, regulatory and macro forces.Over longer time horizons, avoiding large losses can matter more than capturing every upside. “You have to be able to stay at the table,” says Reed. “If you lose your money, then you no longer have the money to reinvest. Compounding over periods of time really makes the difference.” In high yield, that means avoiding defaults where possible.Markets move on, even when allocations do not. Indices are reweighted, sectors expand or contract, and new debt issuance reshapes fixed income benchmarks. A strategy set a decade ago can end up carrying unintended exposures.Expectation Setting or Pointless Scaremongering?‘Your capital is at risk’ – five words that send shivers down the spine of nervous investors. But does this warning really deter irresponsible investment or just alienate those who could benefit from putting their money to work?According to a review conducted by the UK’s Investment Association, generic warnings do nothing to increase awareness of the pros and cons of investing, are often misunderstood, and should be replaced with straightforward explanations of how the value of an investment can rise or fall.The review stated that the ‘your capital is at risk’ warning is often interpreted as implying a high probability of loss or even total loss, rather than as a general statement about investment risk linked to market volatility.Read more: UK's FCA Requires “Cooling-Off Periods” and Risk Warnings as Crypto ETNs ResumeIt added that even a simple ‘you could lose money’ statement can be misleading, especially to novice or less confident investors, because it overemphasises the downside and fails to explain how investments work.The UK government hopes that by helping individuals make more informed decisions, it can reduce the huge sums of cash sitting in low-interest deposit accounts and make more money available for investment.The review carried out by the Investment Association concluded that consumer perceptions of risk were a significant barrier to investment and that there was no incentive for firms to change the way they do things due to a lack of regulatory clarity.Fund managers have been recommended to provide customers with simple, accessible explanations of how investments can rise and fall, presented alongside relevant benefits and explicit time horizons.A number of asset managers have already changed their risk disclosures and reckon it has led to an increase in the number of people opting for stocks and shares individual savings accounts rather than the interest-based alternative.Managers Focus on First-TimersOn the subject of making investing more accessible, a number of platforms in the UK have introduced services targeted at first-time investors recently.Within days of the Financial Conduct Authority’s targeted support regime coming into effect on 6 April, Royal London and Quilter confirmed that they would be taking advantage of the opportunity to offer tailored recommendations to groups of consumers with similar characteristics. The former has estimated that this type of support could have a potential audience of more than 20 million people.You may also like: “People Knocking on Our Door to See That We’re Here,” IG Group’s MENA CEOLast week, Vanguard confirmed that it has received targeted support permissions from the Financial Conduct Authority (FCA) to launch a service that will take users through a series of questions designed to determine their objectives and risk appetite.According to Vanguard, this will enable it to suggest an investment fund that is best suited to the investor’s circumstances. It says user testing has generated positive feedback, with comments including how easy it was and how it reduced feelings of being overwhelmed and fearful.Research conducted by KPMG suggests that consumers are enthusiastic about the prospect of having access to targeted support.“The fact that almost one in two consumers want to receive targeted support creates a once in a generation opportunity to support the UK’s ambition to create a nation of savers,” says KPMG UK targeted support lead, Jane Wilson.However, she warns that the onus is on providers to make sure they really understand people’s goals and, above all else, deliver careful, clear communication that actively encourages people to invest more at a time when concerns about financial scams are at an all-time high.“Trust is fragile, so if people feel sceptical, confused or overwhelmed when they first access financial support, the opportunity will be lost,” says Wilson.While industry experts do not expect targeted support to suddenly release the billions of pounds held in cash, there is optimism that as platforms learn from the early stages of the process, they will significantly close the advice gap that currently sees less than one in 10 people receiving financial advice.This article was written by Paul Golden at www.financemagnates.com.