Charlwood
Leigh Unit Trusts and OEIC's
Charlwood Leigh Unit Trusts and OEIC's
Many
people want to invest in the Stock Market but do not have
the necessary information to select the right individual shares.
Collective
investments, such as unit trusts, were established some years
ago, to allow this type of investor to buy shares through
a manager who knows what stocks to pick. The average unit
trust has about 80 stocks in it, so you spread your investment
between those 80 shares and thus reduce your risk. The value
of the units themselves which contain the shares, can fall
as well as rise, but in the long term investments in equities
via unit trusts tend to perform better than other asset classes.
Over
the last few years, most unit trust providers have converted
their funds into Open Ended Investment Companies (OEICs),
which are similar in structure to Unit Trusts, but with a
simplified 'single pricing' structure. This makes for greater
'transparancy' in assessing costs and performance.
Investment
Trusts are a similar media to Unit Trusts, but Investment
Trusts are limited companies which are allowed to borrow money
and so can, therefore, gear the investment by buying extra
shares when the market is right and pay back the bank once
they have made a profit. These are a little more challenging
for investors and expert advice is needed.
How
you buy unit trusts, OEICs or investment trusts is also an
important decision. Charlwood Leigh have already mentioned
you can buy them through ISAs and Personal Equity Plans. You
can also buy them within certain pension portfolios and investment
bonds. Otherwise you can buy them very much like stocks and
shares and hold them individually.
For
further information on Charlwood Leigh Unit Trusts and OEIC's
visit the Charlwood Leigh website.
|
