Choosing a unit trust

Article Abstract:

UK investors are able to select from a wide variety of unit trusts and they should first assess their investment needs before making a decision. They should decide whether income or growth are more important, and levels of risk they are prepared to accept. Issues to research include the performance of the sector the trust is involved in and the consistency of the fund manager's performance. The charges included in performance data should also be investigated as should total returns.

Author: Bailey, Anthony
Investment Companies, Economic aspects, Mutual funds

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Personal equity plans: the year of living safely

Article Abstract:

UK personal equity plans (Peps) offer tax advantages to investors who can invest in corporate bonds since 1995. Savers have still kept funds in building society deposit accounts but more funds may move into Peps after tax exempt savings accounts (Tessas) mature in 1996. Some corporate bond Peps have done well in attracting funds, but Pep sales have dropped in the half year from April 1995. Peps and pension schemes both offer major tax advantages to investors.

Author: Bailey, Anthony
United Kingdom, Tax planning

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No such thing as a free guarantee: a spate of guaranteed equity plans have come to market. In principle they sound ideal for cautious investors but there is a price to pay

Article Abstract:

Guaranteed equity plans or bonds offer a return in line with certain stockmarket indexes or, return of your money if the index falls during the period of investment. Guaranteed plans are usually provided by the major financial institutions. However many plans are inflexible, tying money up for five years, and the return could be relatively low if the stockmarket is at a low when the plans matures.

Author: Bailey, Anthony
Investment Funds & Trusts, HOLDING AND OTHER INVESTMENT OFFICES

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Subjects list: Evaluation, Investments
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