Making sense of performance tables

Article Abstract:

Investment trusts offer investors a chance to spread risks and they can use performance tables to assess which of the many trusts to select. Trusts tend to perform well if they have done so in the past, though there is no certainty that this will occur. Tables include data on net asset value, share prices and gearing. Total returns can be calculated in terms of net asset value and the price of the investment trust's shares. Share price performance is a more important factor.

Personal finance

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Dabble in options...at a distance

Article Abstract:

UK investors may seek exposure to options without investing directly, and can use managed funds for this purpose. Options are sometimes perceived as speculative investments, involving risk, but they are also a way to control risk and unit trust products use options to offset drops in share prices. Fund managers may also invest some 95% of assets in vehicles that bear interest with the remainder invested in call options to benefit from increases in share prices.

Analysis, Derivatives (Financial instruments)

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