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… Continue reading Pooled investment schemes
Category: Investment
Open-ended investment funds
Acting in the investors’ best interests at all times Open-ended investment funds are often called collective investment schemes and are run by fund management companies. There are many different types of fund. These include: Unit trusts OEICs (Open-Ended Investment Companies, which are the same as ICVCs – Investment Companies with Variable Capital) SICAV (Société d’Investissement… Continue reading Open-ended investment funds
Individual Savings Accounts
A popular ands imple way to save The end of the 2009/10 tax year is rapidly approaching and now is the perfect time to consider your Individual Savings Account (ISA) options. These tax-efficient wrappers are a popular and simple way to save, as you don’t pay any personal income tax or capital gains tax on… Continue reading Individual Savings Accounts
Portfolio diversification
Managing the risks you are exposed to in order to avoid suffering losses to your capital Whether you’re planning to start investing your money, or even if you’re already a seasoned investor, it’s crucial to make sure you manage the risks you are exposed to in order to avoid suffering losses to your capital. The… Continue reading Portfolio diversification
Investing for income
During these difficult economic times, one of the tools available to the Bank of England to stimulate the economy is interest rates. Lower interest rates mean that it is cheaper to borrow money and people have more to spend, hopefully stimulating the economy and reducing the risk of deflation. This is why the Bank of… Continue reading Investing for income
Offshore bonds
Utilising tax deferral benefits to minimise tax liabilities Finding the right offshore investments can be a key factor in making the most of your wealth, and it’s not only for the wealthiest of investors. With a few well-advised decisions, you could broaden your investment portfolio. If appropriate, offshore bonds may provide an opportunity for your… Continue reading Offshore bonds
Socially responsible investing
Not sacrificing your life principles in exchange for chasing the best financial returns For investors concerned about global warming and other environmental issues, there are a plethora of ethical investments that cover a multitude of different strategies. The terms ‘ethical investment’ and ‘socially responsible investment’ (SRI) are often used interchangeably to mean an approach to… Continue reading Socially responsible investing
Main types of investment
Understanding asset classes Cash This involves putting your money into a savings account, with a bank, building society or credit union. Your money may not hold its spending power if inflation is higher than the interest rate. Cash is the most basic of all investment forms. Saving money into a deposit account with a bank, building society or… Continue reading Main types of investment
Investment diversification
Protecting your money from adverse market conditions Today’s markets are as uncertain as ever. But there is one certainty – the future is coming. It may no longer be enough to simply preserve what you have today; you also have to build what you will need for tomorrow. When deciding whether to invest, it is… Continue reading Investment diversification
Allocating wealth
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… Continue reading Allocating wealth