• Funds
Funds usually track a particular index or sector, such as the FTSE100, which is based on the leading 100 shares in the stock market. The price is based on the overall amount invested in the fund by everyone concerned and, as usual, can go up or down. Unlike most shares, there is no stamp duty to pay on transactions, only stockbroker commission.
• Unit trusts
Unit trusts are similar to funds, except that they have a fund manager who decides what to invest in. The trust is split into units, each of which has a price related to the overall investment. There is a charge, usually about five per cent, between the purchase price per unit and the sale price at any one time.
• Investment trusts
An investment trust represents an investment in a company whose sole business is to invest in others. In effect, you are giving the company your money to invest on your behalf. However, as more people do so, the risk of loss is spread between all investors and your own personal risk is limited accordingly.
Whether its investing for your child , your ISA, your pension, or monthly savings plan, request your FREE Investment Trust brochures here.
Independent offshore savings, investment, pension and taxation advice.
Independent offshore savings, investment, pension and taxation advice.
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