Beware brokers' Pep income charges

Article Abstract:

UK personal equity plans (Peps) can be run by stockbrokers, or investors can run their own Peps. Charges for reinvestment of dividends may be high and income has to be reinvested in order for long term growth to be obtained. Compound interest brings benefits, especially over the longer term, but reinvestment may cause problems for small investors who may thus take the income. Small investors can use collective investments like investment trusts and unit trusts as part of their Peps, to avoid this problem.

United Kingdom, Mutual funds

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Take care with shares overseas

Article Abstract:

UK investors should consider the benefits of investing in foreign shares, such as the chance to gain access to high-performance sectors. They should also beware of some of the dangers. These include higher risk levels and high costs. Costs can weigh heavily for smaller investors and trade should have a minimum value of 5,000 pounds sterling. Foreign exchange volatility can add to risk levels. Smaller investors should consider using funds to gain exposure to foreign markets.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Analysis, Stock-exchange, Stock exchanges, Exchanges

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Nominee charges

Article Abstract:

UK stockbrokers' charges for nominee accounts vary and may not be applied consistently. Brokers benefit from cost savings by offering nominee accounts, though they charge for this service. Charges may not be transparent, such as brokers retaining interest when dividends are paid every quarter into nominee accounts. Dealing commission may also be different for customers using nominee accounts. Charges may also be altered when the Crest system is introduced.

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