Article Abstract:
UK investors are often attracted by UK government securities (gilts) as a safe investment vehicle. They may seek to buy gilts through a stockbroker, but charges are much lower if they use the National Savings Stock Register, and visit their post office for the forms. Gilt unit trusts are an expensive way of investing in gilts. Gilts can be sold on the stock market, so they undergo changes in their price, and this means that investors can lose money through this type of investment.
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Article Abstract:
UK government securities (gilts) can be held until redemption, and this method offers less risk than with a unit trust where gilts are traded. Fund charges of unit trusts can affect returns. Investors may also be able to carry out tax planning by using a broker and investing themselves, while unit trusts are less flexible. Investors seeking low charges can use the service offered by National Savings, or can use stockbrokers offering execution-only services.
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Article Abstract:
Index-linked UK government securities (gilts) are attractive for UK investors at a time of political uncertainty which could affect equities, argues HSBC Markets. Inex-linked gilts tend to perform well in uncertain times as occurred during the 1992 election campaign. All markets tend to be affected by elections but index-linked gilts tend to outperform equities by some 5%, and this figure could be higher if shares are overvalued at the time of purchase.
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