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There remain many serious issues in the world economy; some regions are experiencing more difficulties than other but such is the interdependency of national economies that no one country can realistically steam ahead. Countries such as China, Brazil and India have been seen as the growth countries in the early years of the 21st Century. The eurozone is contrast is finding serious issues with painful bailouts creating social disquiet.

Take advantage of proven expertise

In such circumstances investment is a subject where the ordinary man in the street needs quality advice. There are no guarantees that past performance is any guide to future success but the strength of some of the largest players in the investment market suggests they are the first places to go for advice.

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Unit trust prices – legal and general assurance, South Parade. Leeds

On a small scale individual savings accounts (ISA) give an investor some tax free benefits but the current allowance is little of £11,000 per person per annum and only half of that can be cash. The balance is made up of stocks and it is here the amateur may need guidance on the best investments.

Unit trust prices vary and anyone with more than the ISA allowance can discuss the options of where to invest. An initial discussion with an expert can identify the things to consider such as particular stock markets, business sectors or regions in which to place extra investment.
 
 

Fund manager options

A fund manager will buy and sell in search of growth. Investment in equity may be the manager’s decision based upon the principle of where the best chances of growth exist. There are bonds which provide an agreed return in exchange for lending to government for example.

Some business sectors are more attractive than others.The energy and modern technology sectors are among the favourites. The financial service sector is seen as less promising.

It is possible that the value of an investment can drop; the hope of course is that it will grow similar to an ISA but there are no tax benefits. It is a product that allows monthly additions as small as £50 with the minimum initial outlay £500. There is no limit to the amount that can be invested in a unit trust. It is simply a matter of opening an account which can be done online, by post or calling with a credit or debit card details to hand.

Summary

Investing in unit trusts should be a medium to long term strategy possibly in excess of five years. In summary there are a few cautionary words to remember when considering this form of investment:

  • There is no guaranteed growth and value can fall as well as rise
  • There may be investment overseas in which case currency fluctuations will impact on the value
  • There are no tax benefits unlike with ISAs
  • Rules can change based upon government legislation/budgets
  • It is important to read and understand the explanatory documents that the company provide as a matter of course.

Image Credits Wikimedia Commons Stanley Walker


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