Minimising exposure to volatility and market setbacks
Investing would be easy if markets rose in a straight line. Unfortunately, that is rarely the case. Over the long term, assets such as shares and bonds have tended to produce positive returns, but there have been several bumps along the way. In any event, past performance of investments cannot be taken as a guide to their future performance.
Topic: Investment
Portfolio diversification
Managing the risks you are exposed to in order to avoid suffering losses to your capital
Whether you’re planning to start investing your money, or even if you’re already a seasoned investor, it’s crucial to make sure you manage the risks you are exposed to in order to avoid suffering losses to your capital. The key is to build a diverse portfolio with a mix of different investments that makes sense for your attitude to risk.
Emerging market attractions creep back up
Living with several pending risk events, liquidity and risk appetite go with the territory
The fundamental environment in emerging markets remains stable. As the market has grown accustomed to living with several pending risk events, liquidity and risk appetite have been creeping back up. Buyers of emerging market mutual funds have been returning to the asset class after the commencement of the ECB’s version of QE.
Dividend heroes
Companies which have increased their dividends each year for at least 20 years
Interest rates recently marked a sixth year at a record low of 0.5%. Therefore, it is noteworthy that research from the Association of Investment Companies (AIC) shows that a fifth (21%) of AIC member investment companies which have been in existence for more than 10 years have raised their dividends for at least 10 years in a row.
Generating an income from your portfolio
Narrowing the knowledge gap for investors
Record-low interest rates are rarely out of the news these days. With UK investors struggling to achieve a decent income from traditional investment sources, it might raise a few eyebrows to learn that less than half can correctly explain the term ‘income investing’.
Hunting for income
What gives specialist sectors an advantage?
The hunt for income has shown no sign of slowing. Alternative assets in areas such as infrastructure, debt and property can offer a high level of income, and, being illiquid assets, they are particularly suited to being held in a closed-ended fund. Indeed, of the 49 investment companies yielding over 5%, 32 (65%) are from specialist sectors[1]. What gives these specialist sectors an advantage when it comes to yield? Why would investors consider these specialist sectors as part of their income portfolio?
Nation of savers
Year-on-year rise in the number of long-term savers
The UK is becoming a nation of savers, with three quarters (74%) of people saying they are currently saving, research from Scottish Widows has revealed.
Trading places
It’s not just about picking investments wisely, it’s holding them in the most suitable place
Now that we’ve entered a new tax year, if you are already planning how you are going to fully utilise your current Individual Savings Account (ISA) tax-efficient allowance, it’s not just about picking investments wisely – it’s also important to make sure you hold them in the best place.
With this in mind, the Association of Investment Companies (AIC) has taken a look at investment company performance data when the full ISA limit is invested. If you had invested a lump sum of £15,000[1] into the average investment company ten years ago, you would now have £38,323.50. This is £6,433.90 more than the same investment in the FTSE All-Share, which would generate £31,889.60.
Getting more financially savvy
Sorting out finances high on most people’s list
Britons are determined to become more financially savvy about their saving and spending habits this year, with three quarters (76%) of adults admitting they are prepared to moderate their lifestyle, according to a new survey by Standard Life.
Getting more savvy about saving and spending
Sorting out our finances is high on our list of priorities in 2015
The British population is determined to get more savvy about their saving and spending habits in 2015, with three quarters (76%) of adults admitting they are prepared to moderate their lifestyle, according to a new survey by Standard Life.
