Investing in Funds
Investing in Funds can be a useful way of putting your money into the stock market. It spreads your risk across a range of companies. It allows you (when they're good at their job) to benefit from the expertise of City professionals, with their access to extensive research and analysis. And investment funds also allow you to invest in specialist, overseas and emerging markets, where it can be much more difficult for the private investor to purchase shares in individual companies.
The main drawback to investment funds is the cost. You usually have to pay both an initial fee (but not always - see below) and an annual management fee, and these can significantly reduce your investment returns. And then some funds simply perform badly. They could be launched at the wrong time (at the top of a bull market), or ineptly managed.
Every week, we have our own Fund of the Week feature. To get all our latest advice on the best funds to invest in, just sign up to our Free Trial.
And then there are all our further Funds articles to browse through below...
An attractive, high-yield way to play oil
If you're looking to play the the rising oil price, a less widely known option is to invest in a Canadian oil trust, known as a Canroy. We look at two trusts...
Fund of the week: buy European blue chips
Although a US recession is never good news for Europe, things are a lot better on the continent than they are across the Atlantic, says Rod Marsden, manager of the JO Hambro Continental European Fund.
Fund of the week: a simple but solid strategy
The Rathbone Income and Growth Fund’s investment strategy may seem simple, but it’s solid, returning 95% over the past five years.
Investment trusts: Japan still the best bet
Discounts on investment trusts have widened as jittery investors have moved their money out of equities. And the real discounts are to be found in – where else? – Japan.
Big picture is more vital than any manager
When a downturn arrives, you’re better to sell out of a market entirely rather...
Fund of the week: plug into Asian growth
Often overlooked in favour of the Aberdeen Asia Pacific fund, Martin Currie...
