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Shares

Share investing – ETFs and LICs

ARE THEY THE SAME AS MANAGED FUNDS? ETFs and LICs are collective investment vehicles that pool together investors funds, and that you can buy and sell on the stock market. Of course, these entities employ managers and this involves additional costs to investors (compared with investing directly in the underlying companies). So these investments are a sort of half-way house between direct investment and traditional managed funds.

Share investing – choosing what to buy

TOO DAUNTING? Does researching 15 or more companies across 8 or more sectors, each offering a different blend of yield, potential growth and risk seem daunting? Remember there are a range of businesses offering assistance, including stockbrokers, investment newsletters, financial advisors, and accountants. There are also alternatives. In coming articles, we will discuss some shortcuts to a diversified share portfolio: including ‘share packs’, Exchange Traded Funds, and Listed Investment Companies.

Thinking of buying shares? – here’s a starting point

UNDERSTAND THE RISK The link between risk and return is the most fundamental rule of investing. All investment involves risk. Even a ‘risk free’ government guaranteed bank deposit involves risk: the risk that the return will be insufficient to meet your needs. And the risks for each investment are different. So every time you contemplate an investment, make sure you understand its individual risks.