Investment Funds are a popular route for those new to the investing world as relatively speaking, are a more conservative route for investing.
This is partly as you are combining your money with other people in a collective investment, rather than becoming a direct, sole owner of a slice of a company. It is the diversification in a fund that makes it more conservative than investing shares directly into a company.
A UK Equity fund may invest in hundreds, if not thousands of companies, sharing the load and reducing the possibility for complete loss for the investor.
The investor can buy ‘units’ in a fund, which can then rise, fall or stay the same in value and can be anything from commodities and bonds, to cash and property. An investment fund can offer great management expertise, a wide selection of investment opportunities and a lower investment fee.
Often the cheapest route for investing in funds can be known as a ‘Fund Supermarket’ or a ‘Platform’. The ‘Supermarket’ is a one-stop shop for fund investments, where it’s possible to buy and hold funds you are looking to invest in. Not only that but you can sell them here in the future.
Choosing the funds is a two-stage process – picking what platform to use, then what investment to put in it. It’s sort of like going to buy toothpaste; you need to choose what shop to go to (platform), then what toothpaste you want to buy (funds).
In a similar way to shopping for food, shopping for funds depends mostly on your current needs. Maybe your shopping to fulfil an instant need – so like purchasing a reduced meal to eat that night, you’ll be saving money from your choices.
However, you may be looking for something more long-term, and therefore likely steer clear of short shelf life items, investing a little more to get a bit more bang for your buck. It needs to be right. Right for you, at the right place, and the right time. And Tavistock Investments can help with that.
Of course, there’s always so many choices available it can be overwhelming. But unlike a normal supermarket shop, at the ‘Fund Supermarket’, there’s no need for a detailed list. Although there are wide range of funds from a lot of providers, Tavistock Investments can establish what products are suitable for you simply.
At Tavistock Investments Plc, Christopher Peel and John Leiper have thirty plus years of experience in managing “shopping baskets” and shopping for products across equities, commodities and property.
Popping to the supermarket is a part of everyday life, a completely undaunting experience for most. Why not make investing that way too?