This corporate structure allows investment trusts to take a long-term
approach, so getting through difficult market fluctuations, which
in the current economic climate, could be the most suitable vehicle
for you.
As with any company listed on the Exchange, the trust's share price
is determined by supply and demand for it's shares.
In effect you become a shareholder of the investment trust, who
then buy and sell shares in other companies on your behalf, with
the investment decisions being made by an expert investment manager
based on the aims of the trust.
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Investment Trust Summary
- Board of Directors - as with any company the Board
of Directors of the investment trust are there to look out for the
interests of the shareholders and are completely separate to the trust
managers.
- Professionally managed - investment trusts are
managed by experts trained to anticipate trends and opportunities
- Lump sum investment or monthly savings
option
- Closed-ended - number of shares in issue is fixed
- Share price of investment trust determined by the
stock market
- Risk Spread - as the money in an investment trust
is pooled and invested in a variety of companies, the risk is spread
so you are not reliant on one or two companies performing well.
- Different aims and objectives - e.g. one trust's
aims may be to provide an income, yet another's may be to generate
as much capital growth as possible.
Chartered Financial Planners - Principle First Financial
Services are one of the few Independent Financial Advisers to achieve
Chartered Status in the UK - a reflection of our professionalism and
dedication to providing the highest level of customer service and
financial planning, including wealth management and inheritance tax
planning.
Principle First Financial Services is a trading style
of GMF Marketing Services Ltd. which is authorised and regulated by
the Financial Services Authority. Principle First Financial Services
is entered on the Financial Services Authority's register under reference
number 409667.
PAST PERFORMANCE IS NOT A GUIDE TO FUTURE RETURNS & INVESTMENT
RETURNS MAY FALL AS WELL AS RISE - Risk Profile must be clarified
before proceeding with any investment advice. We use the phrase best
ISA on the basis that it may be the ISA most suitable to
your needs.
