ISAs (Individual Savings Accounts) are a ‘must-have’ for nearly everyone, whether you are making short-term savings or long-term investments, thanks to their tax efficiency and flexibility. There are different types of ISAs to choose from depending on your savings and investment objectives. […]
Guide Category: Funds
The 8 to 18 fund rule
This is the manageable number of funds in your portfolio. If the number of funds is greater than 18 then it can get difficult for an investor to keep track of what’s going on — professional portfolio managers tend to run at about 50 fund holdings but are on the case 24/7 and have a supporting team. Another problem in holding too many funds is that overlap can occur. […]
Investment charges and fund costs
You will have to pay various charges and costs whatever type of investment you buy. For example, if you invest directly in shares of a company such as Unilever, you will have to pay dealing costs and stamp duty. If you buy open-ended funds, investment trusts or ETFs, there will be several layers of costs to pay. Some are more explicit than others. […]
Buying and selling funds
The best place to buy funds depends on whether you need advice or feel confident enough to make your own decisions (with a bit of your own research). […]
Types of funds
Generally speaking, if you want to invest long term either in a SIPP, an ISA or direct, the easiest way to do so is through a fund. These are products where investors’ money is pooled together to create a portfolio that is invested in a range of assets, such as UK shares, overseas stock markets, corporate bonds or commercial property. […]
How to choose the best investments
Choosing the best investment is not easy. Most people would like to get the highest returns with the least amount of risk. But there is normally a trade-off. The highest returns normally come from the riskiest of investments. […]