Independent Financial Life Planners Bishop's Stortford: What does it mean to choose investment trusts?

Monday, 16 March 2015

What does it mean to choose investment trusts?

Our experienced Independent Financial Advisors at Enable in Bishops Stortford tend to recommend more passive investments. But we also know that Investment trusts are a highly popular and well-established way of investing for wealth management. An investment trust is essentially a public limited company with shares quoted on the stock market. When you invest in an investment trust you as good as become a shareholder in that company, they tend to primarily invest in the shares of other companies but some contain bonds or other financial assets a common one being commercial property.

For some an investment trust is an excellent way of gaining access to the potential rewards that active management of a stock market investment can offer – without needing to constantly monitor and manage your portfolio. These trust pools your money with that of other investors and professional fund managers invest this in a wide range of different companies. So even if you only have a small amount to invest, you can gain exposure – cost-effectively – to a diversified and professionally-run portfolio of shares and your risk is also spread much more than if you were reliant on the success of one or even a handful of companies.

There are also some tax advantages when an investment trust sells shares, it is not taxed on capital gains it has made, unlike direct investment made by private investors. Historically over the longer term investment trusts have delivered but past performance is not a guide to future performance. The value of investments in the stock market can go down as well as up and you may not get back your original investment. If you are interested in finding out more about investing your savings Enable’s IFA's are here to help.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.