Article Abstract:
United Kingdom personal equity plans (Peps) have been affected by stock price falls, and this is especially true for Peps invested in smaller companies and foreign stocks. Long term investors have still benefited from gains, but investors should be aware that a strong performance in the past may not be repeated. Investors could choose corporate bond Peps rather than committing funds to the stock market. There are also index tracker Peps which follow a range of indexes, and these tend to be relatively safe investments.
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Article Abstract:
UK investors can benefit from a rise in the limit for personal equity plans (Peps) to 50,000 pounds sterling from 6,000 pound sterling from May 1996, brought about by a scheme using existing regulations from Scottish Amicable. Investors invest in income shares with tax free dividend income, and in warrants. The shares will be redeemed after seven years when the trust's lifetime ends. Investors can also use saving schemes to invest in investment trusts, and can pay lump sums.
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Article Abstract:
There are a number of different types of UK personal equity plans (Peps). These include discretionary or managed Peps which may allow investors to buy more cheaply than through brokers. Self-select Peps are available for investors seeking to choose their own shares, and advisory Peps allow investors to select shares with advice from brokers. Corporate bond Peps base funds on corporate bonds, while corporate Peps are restricted to single companies.
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