Do You Know Your ISA From Your Unit Trusts?
Instability, one word which could be used over and over again to describe the current state of the United Kingdom's and indeed the rest of the world's financial markets.
Since 2008 the recession has been hitting both businesses and consumers alike and has touched most people in one way or another.
It has spawned the creation of new 'groups' in society from the 'squeezed middle' to the 'working poor.
' Governments and their associated bodies encourage is to save, to plan for the future and to avoid debt with the old mantra, "if you can't afford it then you simple can't have it.
" The quandary nowadays that many find their selves in is that they simply do not have enough monthly or weekly income to save.
Many of us would like to have the means and ability to use our money wisely and to make the precious amount that we so earn work profitably for us, securing some sort of financially stable future.
In reality how much do we know about finances and the options available? Not many people these days have access to a personal financial adviser or stock market broker.
Other than the traditional 9-5 slog are there other ways to enable us to make our money work for us? Investment funds might strike fear in the hearts of many, you may however participate in them already through an Isa or your monthly savings scheme.
Would you trust your money in the hands of a fund manager and accept the potential risk for financial reward? There are several different types of investment fund from pension schemes, unit trusts, open ended investment companies or investment trusts to name but a few.
For a monthly stake you put your money in control of your fund manager who will then in turn invest your money across a range of companies, combine it with other participant's investments and produce a return for investors.
How will you know which type of investment fund is right for you? You first of all have to be clear on why you are investing and the amount of risk you are willing to undertake.
Typical lower risk investments tend to be unit trusts or investing in shares within stable blue chip companies.
When you invest some of your money and are reliant on the stock market for your returns you have to be willing to accept some form of risk owing to the unstable nature of the stock market.
If you invest across a number of companies you are reducing the risk by adopting a broad-based strategy.
This is opposed to you investing all of your money in one fund may give greater ROI it will also mean an increased risk.
Since 2008 the recession has been hitting both businesses and consumers alike and has touched most people in one way or another.
It has spawned the creation of new 'groups' in society from the 'squeezed middle' to the 'working poor.
' Governments and their associated bodies encourage is to save, to plan for the future and to avoid debt with the old mantra, "if you can't afford it then you simple can't have it.
" The quandary nowadays that many find their selves in is that they simply do not have enough monthly or weekly income to save.
Many of us would like to have the means and ability to use our money wisely and to make the precious amount that we so earn work profitably for us, securing some sort of financially stable future.
In reality how much do we know about finances and the options available? Not many people these days have access to a personal financial adviser or stock market broker.
Other than the traditional 9-5 slog are there other ways to enable us to make our money work for us? Investment funds might strike fear in the hearts of many, you may however participate in them already through an Isa or your monthly savings scheme.
Would you trust your money in the hands of a fund manager and accept the potential risk for financial reward? There are several different types of investment fund from pension schemes, unit trusts, open ended investment companies or investment trusts to name but a few.
For a monthly stake you put your money in control of your fund manager who will then in turn invest your money across a range of companies, combine it with other participant's investments and produce a return for investors.
How will you know which type of investment fund is right for you? You first of all have to be clear on why you are investing and the amount of risk you are willing to undertake.
Typical lower risk investments tend to be unit trusts or investing in shares within stable blue chip companies.
When you invest some of your money and are reliant on the stock market for your returns you have to be willing to accept some form of risk owing to the unstable nature of the stock market.
If you invest across a number of companies you are reducing the risk by adopting a broad-based strategy.
This is opposed to you investing all of your money in one fund may give greater ROI it will also mean an increased risk.
Source...