What are you paying for yours?

Article Abstract:

Charges for unit trusts can vary from 7,000 pounds sterling to 20,000 pounds over 25 years. The financial services sector now has to disclose the cost of its products in a Key Features document. This will tell investors about charges, hidden expenses, the commission that advisers receive and any risks associated with the product. A review of costs reveals that an average unit trust costs double that of an investment trust. Running costs are 1.27% and 0.96% respectively. Unit trust Peps cost an average of 58.60 pounds, against 65.90 pounds for a unit trust.

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The importance of levers

Article Abstract:

The City of Oxford Geared Income investment trust offers a clear illustration of the problems of leverage. City of Oxford, a split-capital trust, has seen its share price tumble and is suffering from the negative effects of gearing.

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ITs a wonderful life

Article Abstract:

Many investors prefer investment trusts to unit trusts, and many websites now exist to provide information and help investors choose investment trusts. Several web sites are examined.

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