Abstracts » Business

A pep for trusts

Article Abstract:

The popularity of investment trusts is being enhanced by a loophole in the regulations set up by the UK government. The flaw in the regulations allows the investment of a maximum 6,000 pounds sterling for a general PEP in newly-issued investment trusts. This has resulted in a series of new issues and renewed strength for the investment trust industry. As public limited companies that invest in other companies' shares, investment trusts are involved in reduced risks because they allow for the investment of small amounts in a range of companies. As such, investment trusts are often the approach taken by investors toward involvement in the stock markets, particularly those abroad. Several categories of investment trust make consultancy with a financial expert a wise pre-investment practice.

Economic aspects

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Little and often

Article Abstract:

Savings investment trust schemes offer more advantages than other saving schemes. Foremost among these advantages are minimal charges, which make investment trusts the most inexpensive approach to a diversified equity portfolio, and ease of administration. Unlike alternative savings plans, investment trusts can be redeemed early without any penalty. Savings investment trust plans appeal particularly to cautious investors as they take advantage of pound-cost averaging. However, oversold investment trusts present some dangers.

Usage

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Repaying mortgages, finding the school fees

Article Abstract:

Many financial advisers are recommending the inclusion of a personal equity plan (PEP) as part of an investment program designed to handle either mortgages or school fees. Mortgage PEPs are more flexible than traditional endowment mortgages and have the added advantage of providing tax-free capital growth. Likewise, school fees PEPs provide flexible, tax-efficient vehicles for preparing for the expense of private school education.

Finance, Investments, Education, Mortgages, Britons, Britons (Ancient people)

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