Understanding investment risk

Making informed decisions to improve your chances of achieving your financial goals

Your investment time frame will determine your risk profile to some extent, as this has a direct bearing on your capacity to take risk. Risk capacity is also influenced by factors such as your age, wealth, and the goals you are saving and investing for. Your capacity for risk is likely to change over the course of your life as your personal circumstances change. Continue reading “Understanding investment risk”

Ethical saving and investing

Making the world a better place

Whether it’s termed ethical, responsible or sustainable investing, the aim is generally the same. It’s investing your money in businesses which have some intention of making the world a better place. In the past, ethical investing was the only option if you wanted to invest in companies aligned to your values. But this ‘good money’ sector has moved on a lot in recent years. Continue reading “Ethical saving and investing”

Tracker funds and exchange traded funds

Market index following the overall performance of a selection of investments

Tracker funds and exchange-traded funds (ETFs) are investments that aim to mirror the performance of a market index. A market index follows the overall performance of a selection of investments. The FTSE 100 is an example of a market index – it includes the 100 companies with the largest value on the London Stock Exchange. Continue reading “Tracker funds and exchange traded funds”

With-profits funds

Stock market return linked but with fewer ups and downs than investing directly in shares

If you save regularly or invest a lump sum using a life insurance policy, you might choose to invest in a with-profits fund. These aim to give you a return linked to the stock market but with fewer ups and downs than investing directly in shares. However, they are complex and are not as popular a form of investing as they used to be. Continue reading “With-profits funds”

Investment trusts

Public company aiming to make money by investing in other companies

An investment trust is a public company that raises money by selling shares to investors, and then pools that money to buy and sell a wide range of shares and assets. Different investment trusts will have different aims and different mixes of investments. Continue reading “Investment trusts”