Beginners Guide to Investments
Investing can seem quite daunting, especially with thousands of different
products available and countless providers and advisers to confuse
things further. We aim to give you some straightforward information
and our independent advisers are always on hand to help you further.
Our online investment system has also been developed to make investing
online as easy as possible. Not only is the process itself uncomplicated
but we have also put together recommended portfolios to suit your
risk profile, helping you with your investment decisions.
Go to our fund supermarket to view our recommended portfolios here
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1. Types of
Investments |
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Cash - Includes
bank and building society accounts. Generally low risk with
easy access, opportunity to earn interest free of tax if save
via an ISA.
Bonds - Two main types,
Government Bonds (e.g. UK Gilts) and Corporate Bonds. Generally
lower risk than equities although depends on what type of bond
you invest in. Potential to earn higher interest than bank or
building society accounts.
Property
- Two main types, direct property purchase (e.g. buying to let)
and Property Funds. Property funds involve investors pooling
their money, therefore the risk is spread. Returns from property
funds are determined by changes in the market value of properties
held and the rental income.
Equities / Stocks
/ Securities - These are shares listed on a stock exchange
offering dividends or a share of the profits of the issuing
company. You can invest in equities in many ways - by purchasing
the equities directly or investing in a pooled fund or other
investment vehicle. |
| Investment
Vehicles |
| The following links will
give you more information about the types of investment vehicles: |
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ISA Investments
Unit Trusts or OEICs
Investment Trusts
Investment Bonds
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2. Risk
Profile
When trying to determine which kind of investment is
right for you, you must establish the level of risk you are
comfortable with.
Should you decide to seek investment advice your adviser should
help you determine this. This is a major element of our investment
advice process which you can view here. We have also provided
our Risk Profiler here
to help you work out your risk level on your own. |
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3. Determining Your Investment
Goals
Your reasons for investing are important as this will
help establish the time frame for your investments and ensure
that you have the most suitable investment for you.
There are a number of questions you should consider: |
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Are you investing a lump
sum or investing regularly, every month for instance?
What are you investing for? Retirement? New house? Wedding?
Rainy Day?
When do you need access to your investment?
Would you like an income, growth in your investment value or
both? |
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4. Tax Efficient Investing
It is possible to invest in investment funds, investment
trusts and unit trusts and avoid paying tax by investing via
a tax 'wrapper' such as an ISA
(Individual Savings Account) or a pension
fund. You can invest in this way online with us.
Please note that there is a limit to the amount you can save
in any tax year within an ISA. You
can find out more about ISA investment here or invest
online here. |
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5. Investing Online
It is now possible to carry out all your investments
online. We have developed our fund supermarket to allow clients
to invest online and research funds easily. We have also put
together Recommended Portfolios, ideal for those who are not
sure where to invest or if you have an idea of funds you want
to invest in you can research and invest in them also.
Go
to our fund supermarket to invest online >> |
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6. Ethical / Socially
Responsible Investing
Ethical or Socially Responsible Funds allow you to
invest only in companies whose ethics and morals match your
own. With increasing environmental and social concerns the scope
of the funds available has grown so if there are certain principles
you feel strongly about you should be able to find investments
to suit that perform relatively well.
You can find out more about ethical
investments here. |
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7. Charges
Most forms of investment carry a cost. These charges
cover things like setting up your account, keeping you updated
and ensuring that your investment is well managed, including
researching companies and the markets.
We offer significant discounts of up to £378 when you
invest online with us. Go
to our fund supermarket to view our discounted investment funds
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8. Getting Advice
Getting good investment advice is an important aspect
of investing, particularly for the less-experienced investor.
We are independent financial advisers which means you get completely
unbiased advice. Our advisers have a great deal of investment
experience and are confident that they can find the most suitable
investment products for you.
View our advice process
here. Call us on 02871273030 or request
a callback here. |
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