Savings, Money, Finance, Specialist

Savings and Investments

If you're new to the world of savings and investments you'll find this is a great place to start and learn about making the most of your money. We don't tell you which home is best money nor provide online personal advise. We simply want to introduce you the basics of savings and investments, and best of all the site information is FREE!

This introduction will open up the new world of investor information, the risks involved and tips on how to spot good investment or savings vehicle.

For persoanl independant investment advice please contact us.

Savings Deposits

Savings deposits is a term associated generaly with secure or low risk deposits, they can be lump-sum or regular payments and typically offer a range of low intest rates and are very secure.

When we talk about deposit base savings we immediatley think about bank and building scocety accounts. However it is possible to consider unit trusts for deposits if the cash fund is selected.

A deposit is a low risk investment. It pays interest but there is no growth on the nominal value of your capital in real terms. Therefore provide little hedge against that swear word for all investors 'Inflation'.

The Interest paid on such accounts is normally variable and will alter in line with interest rate changes. Higher interest rates can be achieved by investing larger amounts. The returns are usually tiered with investors receiving increasing rates of interest for deposits in excess of £10,000 and again the amount exceeds £25,000. It should be mentioned that higher rates are normally offered by smaller banks and building societies. or if the clinet uses a postal or online account. Most financial advisers will be able to assist in identifying the higher paying accounts, another way would be for you to pick up the financial press available in most Sunday newpapers. For more information please contact us.

Also read related information - National Savings, Offshore Accounts, Fixed interest Securities, Deposit Accounts and ISA's

Investments

Investments tend to refer to lump-sums of money and which carry a medium to high risk. There are many ways to invest your money, such as Property, Chattles, Pensions and many many more. Hiowever for this section we shall focus on Cash lump-sum investments that can be accessed easily if needed.

(a) Unit Trusts - is a pooled investment of shares and /or securities, whereby an investor buys units from a trust manager. It is possible to purchase units in a wide range of funds. Theres are broken down into 28 categories by the association of Unit Trusts and Investment Funds. Some examples of these are-

(i) UK Gilts - Funds which invest in at leased 80% in Goverment securities

(ii) Global Bonds - Funds which invest at least 80% of their assest in Fixed interest securities

(iii) UK Equity and Bond Income - Funds which invest in at leased 80% of their assest in the UK with a further split in to fixed interest and equities.

(iv) Managed Income - Investment which has no more that 60% equities and whereby the growth is returned as income to the investor.

(v) UK Equity Income - Funds which invest at leased 80% of their assest in UK equities and which aim to provide an income.

(vi) Globle Equity Income - Funds which invest at leased 80% of their assests in equities No more that 80% in the UK and which aim to provide an income.

(vii) UK All Companies - Funds which invest at leased 80% of their assest in UK equities which are looking for capital growth.

(viii) UK Smaller companies -Funds which invest at leased 80% of their assest in UK equities which form part of the Hoare Govertt smaller companies Index.

(ix) Japan - Funds which invest at leased 80% of their assests in Japanese shares.

(x) Far East Including Japan - Funds which invest at leased 80% of their assest in the Far Eastern securities including Japan.

(b) Investment Trusts - Are companies quoted on the London Stock Exchange They are identical to any other quotes company, such as M&S. Whereas other companies make their money from selling or providing goods and services, an Investment Trust makes it's profit soley from investments. Investment Trusts can offer various types of shares such as Ordinary Shares, Preference Shares Split Capital Shares, Debenture Shares, Unsecured Loan Stock, Covertable Loan Stoke and Warrents.

(c) Open Ended Investment Companies (OEICs) - Are also know as Investment Companies With Variable Capital. OEIC's are a pooled investment fund of variable size in corporate form. When you invest in an OEIC you invest in the company rather than in units or shares.

Also read related information - Asset Investments, ISAs, Property investments, Overseas property, Trading in Endowments, Stocks and Shares, Equities, CGT and Risk.

We hope you find this web site informative motivational and we wish you the best of luck with your fist steps in to investments. For further help please contact us

Take a look at trading your old endowments, you could get a lot more than you think!

>>Trade in with profit endowments .