Article Abstract:
There have been 36 new funds launched in 1st half 1996 compared with 134 new funds in 1995 and there are more than 1,600 UK unit trusts. Investors should be selective and ask whether new funds have been launched for sound investment reasons. Unit trusts are seeking to attract first-time investors who are concerned about risks. These low-risk funds may also appeal to investors with personal equity plan mortgages and pension mortgages seeking to protect funds accumulated.
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Article Abstract:
The UK investment trust industry has seen a quiet 1995 in relation to 1994, and launches have been fewer. There have been 11 launches in the first three quarters of 1995 compared with 45 launches for full-year 1994. Launches have tended to focus on personal equity plans, income growth and specialist trusts involving small firms or particular sectors. Venture capital trusts offer tax savings to UK investors and the first such trusts were launched in Sep 1995.
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Article Abstract:
New investment trusts have to convince investors of their advantages compared to other trusts which may be trading at discounts. New trusts tend to be more successful when markets are rising. Investors have not fared badly despite buying when markets are high. Launches at the top of a cycle do mean that good returns are more difficult to achieve in the short term, but investors can benefit if they are willing to wait for three or five years.
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