Monthly Archives: January 2016

Individual Savings Accounts

Posted on January 4, 2016 by - Uncategorized

Tax-efficient investment wrapper holding a range of investments

Individual Savings Accounts (ISAs) have been around since 1999 and are tax-efficient investment wrappers in which you can hold a range of investments, including bonds, equities, property shares, multi-asset funds and even cash, giving you control over where your money is invested. (more…)

Investment bonds

Posted on January 4, 2016 by - Uncategorized

A range of funds for the medium to long term

Investment bonds are designed to produce medium- to long-term capital growth, but can also be used to give you an income. They also include some life cover. There are other types of investment that have ‘bond’ in their name (such as guaranteed bonds, offshore bonds and corporate bonds), but these are very different. With an investment bond, you pay a lump sum to a life assurance company, and this is invested for you until you cash it in or die. (more…)

Investment trusts

Posted on January 4, 2016 by - Uncategorized

Reflecting popularity in the market

An investment trust is a company witha set number of shares. Unlike an open-ended investment fund, an investment trust is closed ended. This means there are a set number of shares available, which will remain the same no matter how many investors there are. This can have an impact on the price of the shares and the level of risk of the investment trust. Open-ended investment funds create and cancel units depending on the number of investors. (more…)

Unit trusts

Posted on January 4, 2016 by - Uncategorized

Participating in a wider range of investments

Unit trusts are collective investments that allow you to participate in a wider range of investments than can normally be achieved on your own with smaller sums of money. Pooling your money with others also reduces the risk. (more…)

Open-ended investment companies

Posted on January 4, 2016 by - Uncategorized

Expanding and contracting in response to demand

Open-Ended Investment Companies (OEICs) are stock market–quoted collective investment schemes. Like investment trusts and unit trusts, they invest in a variety of assets to generate a return for investors. They share certain similarities with both investment trusts and unit trusts, but there are also key differences. (more…)

Pooled investment schemes

Posted on January 4, 2016 by - Uncategorized

Investing in one or more asset classes

Investing in funds provides a simple and effective method of diversification. Because your money is pooled together with that of other investors, each fund is large enough to diversify across hundreds and even thousands of individual companies and assets. A pooled (or collective) investment is a fund into which many people put their money, which is then invested in one or more asset classes by a fund manager. (more…)

Pound-cost averaging

Posted on January 4, 2016 by - Uncategorized

A time-tested method for controlling risk over time

It’s natural to be looking for ways to smooth out your portfolio’s returns. Investing regularly can smooth out market highs and lows over time. In a fluctuating market, a strategy known as ‘pound-cost averaging’ can help smooth out the effect of market changes on the value of your investment, and is one way to achieve some peace of mind through this simple, time-tested method for controlling risk over time. (more…)

Taking a long-term view

Posted on January 4, 2016 by - Uncategorized

Remember your reasons for investing in the first place

Stock markets can be unpredictable. They move frequently – and sometimes sharply – in both directions. It is important to take a long-term view (typically ten years or more) and remember your reasons for investing in the first place. (more…)

Allocating wealth

Posted on January 4, 2016 by - Uncategorized

One of the most important investment decisions you ever make

How you choose to allocate your wealth between different asset classes will be one of the most important investment decisions you ever make. Asset allocation can account for the majority of your portfolio returns over the long term, so it’s essential that you achieve the right balance of cash, fixed income, equities and property in your portfolio. (more…)