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Collectives
Collective Investments
Collective investments are also known as unit trusts, investment trusts and OEICs. In all cases an individual is able to invest in a basket of shares of different companies, that way spreading his or her equity investment risk.
With a collective investment your money is pooled, along with that of other investors, to create a large capital sum. Professional fund managers then use this capital sum to build up a large actively managed portfolio of investments. This approach enables you, indirectly, to hold a wide range of stocks and shares in a way which would not be practical for an individual investor, whilst minimising the effects on your capital of fluctuations in individual share values.
Collectives can also invest in fixed interest instruments. These include UK government stock, also known as gilt edged stock or "gilts" for short. Corporate bonds are also fixed interest instruments and both represent direct borrowing on the part of the issuer of the bonds. They are referred to as "fixed interest" because their cost of borrowing is fixed, while the price of the bonds themselves may float up or down depending on supply and demand.
Traditionally, fixed interest investments have been regarded as a safe option. However it is important to remember that not only do they fluctuate in price, but also that the investor risks that the issuer may not be able to pay the interest (coupon) on the bonds, or the principal when the bonds mature.
With a collective investment you have access to expert full time investment management, reducing the risk and complexities of direct investment into equities. Your money becomes part of a much larger investment portfolio with much larger individual investments, as well as more individual holdings.
COLLECTIVE INVESTMENTS SHOULD BE VIEWED AS MEDIUM TO LONG TERM INVESTMENTS.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
Collective Investments
Collective investments are also known as unit trusts, investment trusts and OEICs. In all cases an individual is able to invest in a basket of shares of different companies, that way spreading his or her equity investment risk.
With a collective investment your money is pooled, along with that of other investors, to create a large capital sum. Professional fund managers then use this capital sum to build up a large actively managed portfolio of investments. This approach enables you, indirectly, to hold a wide range of stocks and shares in a way which would not be practical for an individual investor, whilst minimising the effects on your capital of fluctuations in individual share values.
Collectives can also invest in fixed interest instruments. These include UK government stock, also known as gilt edged stock or "gilts" for short. Corporate bonds are also fixed interest instruments and both represent direct borrowing on the part of the issuer of the bonds. They are referred to as "fixed interest" because their cost of borrowing is fixed, while the price of the bonds themselves may float up or down depending on supply and demand.
Traditionally, fixed interest investments have been regarded as a safe option. However it is important to remember that not only do they fluctuate in price, but also that the investor risks that the issuer may not be able to pay the interest (coupon) on the bonds, or the principal when the bonds mature.
With a collective investment you have access to expert full time investment management, reducing the risk and complexities of direct investment into equities. Your money becomes part of a much larger investment portfolio with much larger individual investments, as well as more individual holdings.
COLLECTIVE INVESTMENTS SHOULD BE VIEWED AS MEDIUM TO LONG TERM INVESTMENTS.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks.
Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser
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Your mortgage is probably the largest financial transaction and commitment you are likely to undertake. Surely then you should seek mortgage advice which is individually tailored to your needs
The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you.
Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious long-term financial implications for you and your family.
Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions