Article Abstract:
Private investors should be wary of taking on risks they cannot afford and should ensure they understand the investment vehicle they use. They should assess whether financial products suit them or the salesman who gains commission. They should check that the advisers are registered, the investment product is covered by a compensation scheme, and obtain receipts. They should not make investment decisions in a hurry, and should ensure that deals are backed by written confirmation.
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Article Abstract:
Fund management companies are competing on charges, which is benenficial for investors. They may offer low initial charges, which at first sight seems attractive. Other costs could push up total charges, such as exit charges and bid-offer spread. Annual management fees are also important and can have a major impact on investment returns. Investors should thus assess all charges, not just initial fees, and should assess other aspects of the investment such as volatility.
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Article Abstract:
The new bond based Peps will offer a tax free income of 8-9% and could encourage building society savers to move from deposit accounts into Peps. Traditional equity investors are also expected to review their portfolios in favour of corporate bonds. There are less risks involved with bonds issued by companies with good credit ratings.
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