Abstracts » Business

Fingers in many pies

Article Abstract:

Collective investments are one way of spreading risk and geographical diversification can reduce risk further by spreading risk geographically. Foreign companies may produce good returns in terms of capital growth, even if dividends are not as high as United Kingdom companies. There are risks involved in investing abroad, as the Asian economic crisis has shown. The US market is also at a high level, though smaller companies may offer value. Geographical diversification can be achieved by focusing on specific regions, or by investing in general international trusts.

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New age dealing

Article Abstract:

Electronic dealing has tended not to affect unit trusts, but this looks set to change. Autif, which represents the industry, is to launch trading on the world wide web. The United Kingdom has lagged behind the US in this respect and this is partly due to the larger volumes in the US mutual fund industry. Some fund managers will not take part in the first phase of electronic changing, but there appears to be enough enthusiasm for the project to take off in the UK.

Electronic commerce, E-commerce

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