Tracking down a bargain

Article Abstract:

United Kingdom tracker funds track different indices, with the FTSE 100 and the All-Share indices being especially popular. Geographic diversification is available through funds tracking the World Pacific Basin, FT and Sand P World index, and other international and regional funds. Index tracking offers most for mature markets like the US and UK. A correction could occur in markets seen as highly priced, like the US and UK, and tracker funds do not protect investors against these corrections. Other factors that investors should bear in mind include charges.

Author: Moore, Stephen

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Cheap ways to track a stock market up, and down

Article Abstract:

United Kingdom index tracker funds have become increasingly popular, with unit trust trackers attracting 370 million pounds sterling in 1st qtr 1998. Tracker funds offer low charges and have outperformed actively managed funds in the United Kingdom and US. Investors should beware, however, that tracker funds follow indices when stock prices fall, as well as when they rise. Investors should not believe that tracker funds are risk free simply because the government has recommended them.

Stock-exchange, Stock exchanges

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Subjects list: United Kingdom, Investment companies, Index funds
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