When it comes to taking investment risk to secure a higher return, those aged 55 and over are most likely to be taking the lead with Stocks & Shares Individual Savings Accounts (ISAs), according to research from Standard Life (08 April 2013). Over one in ten (11 per cent) of 55 and overs invest in… Continue reading Time to aim for higher returns
Category: Investment
Developing an investment strategy
Allow your lifestyle to dictate your investment approach To make the most of your investment opportunities, allow your lifestyle and not stock market fluctuations to dictate your investment approach. Your goals are what count, so keep them firmly in mind when you make financial decisions. Long-term strategy Many investors use a consistent, long-term strategy to… Continue reading Developing an investment strategy
Venture Capital Trusts
Wealthier investors taking a long-term view A Venture Capital Trust (VCT) is a company whose shares trade on the London stock market. A VCT aims to make money by investing in other companies. These are typically very small companies that are looking for further investment to help develop their business. The VCT often invests at… Continue reading Venture Capital Trusts
Enterprise Investment Schemes
Attractive tax breaks as part of a diversified investment portfolio Enterprise Investment Schemes (EISs) are tax-efficient vehicles set up to encourage investment into small, unquoted trading companies. Following the changes announced in various Budgets, the EIS is the only tax-efficient investment offering a capital gains tax deferral. Capital gains tax on the disposal of other… Continue reading Enterprise Investment Schemes
Asset allocation
If you put all of your eggs in one basket, you are more vulnerable to risk When deciding whether to invest, it is important that any investment vehicle matches your feelings and preferences in relation to investment risk and return. Hence your asset allocation needs to be commensurate with your attitude to risk. Another key… Continue reading Asset allocation
Spreading risk in your portfolio
One of the principal tenets of spreading risk in your portfolio is to diversify your investments whatever the time of year. Diversification is the process of investing in areas that have little or no relation to each other. This is called a ‘low correlation’. Diversification helps lessen what’s known as ‘unsystematic risk’, such as reductions… Continue reading Spreading risk in your portfolio
Unit trusts
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. A unit trust fund is divided into units, each of… Continue reading Unit trusts
Reducing the overall level of investment risk
The volatility experienced in global markets over the past six years has tested the nerves of even the most experienced investors, making it a difficult time for individuals who rely on income from investments for some or all of their needs. To avoid concentrating risk, it is important not to ‘put all your eggs… Continue reading Reducing the overall level of investment risk
Dividend heroes
Companies which have increased their dividends each year for at least 20 years Interest rates recently marked a sixth year at a record low of 0.5%. Therefore, it is noteworthy that research from the Association of Investment Companies (AIC) shows that a fifth (21%) of AIC member investment companies which have been in existence for… Continue reading Dividend heroes
Pooled investments
Providing the potential for capital growth or income, or a combination of both If you require your money to provide the potential for capital growth or income, or a combination of both, provided you are willing to accept an element of risk pooled investments could just be the solution you are looking for. A pooled… Continue reading Pooled investments
