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Launches target wary investors

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.

Personal finance

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New launches require patience

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.

Investment analysis, Securities analysis

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