2010/08/14 by ukcitymedia.co.uk about : Stockmarket Trading
The options available to investors these days are extensive and it is possible to invest in just about anything that could escalate in value within the modern marketplace.
Investors seeking return on capital may buy stocks and shares, hold money in high interest savings accounts, even buy gold bullion or invest in real estate and property.
Adventurous investors may take a more unusual route by investing in expensive wines, limited edition books, diamonds, Rolex watches or, as the many TV shows suggest, antiques however, many of these options require specialist knowledge which few first time or novice investors possess. What’s more, they can prove cost prohibitive for the early investor.
Mutual fund investing in unit trust, OEIC's and investment trusts allows investors with big or small budgets, to invest in stocks and shares. Managed funds are an especially good way of diversifying your investment portfolio to control investment risk without having to have a massive budget.
By investing in a number of different companies, managed funds and unit trust may span different sectors, risk profile or geographical location. They also require less knowledge of the market although some research into fund options is necessary to ensure that you have the greatest chance of turning an investment into a profit.
If you’re an investor looking for a liquid, small scale investment then mutual funds and managed funds could be an option but that doesn’t mean that they aren’t beneficial for the larger scale investor either. There are low, medium, and high risk funds to invest in and for even greater diversity you can invest in a selection of funds.
If you search through the best performing funds over the last year, 3 years, or 5 years you will find that the top positions are taken by leading fund managers like Henderson, Fidelity, Invesco Perpetual, Newton and Jupiter, although not all top performing unit trusts and investment funds are low cost.
Fund charges differ widely and usually involve an upfront, initial cost and an annual administrational fee although many low cost fund service providers exist and may include Hargreaves Lansdown, Barclays, Selftrade or TD Waterhouse who discount at least some of the initial charge.
Investors in funds need to decide on acceptable risk profile, on areas that they wish to invest in as options are available in emerging markets, special situations funds and funds that seek to profit from countrywide growth within countries such as Russia, China, the far east, India and even the US.
If you are going to invest in funds, it pays to seek specialist fund providers such as Barclays Stockbrokers or T D Waterhouse and consider how much risk you are prepared to take.
From ukcitymedia.co.uk published on 2010/08/14
