Funds, ETFs and Investment Trusts
The value of investments can fall as well as rise and you could get back less than you invest. If you’re not sure about investing, seek independent advice.
If you're starting to build your portfolio, these often low-cost options can help make sure you’re sufficiently diversified from the outset.
When you invest in a fund, investment trust or ETF, your cash is used to buy a selection of investments that usually focus on a particular theme, specific industry or geographical area. Depending on the type of fund you select, a professional fund manager may pick these for you, so you get the extra benefit of their expert know-how.
Funds are collective investments, where your and other investors’ money is pooled together and spread across a wide range of underlying investments, helping you spread your overall risk.
Fund charges have got much cheaper over the years, which is good news for investors. But it’s still vital to understand the different fees involved and the impact they can have on your investment returns.
Would you prefer a fund manager to actively manage your money for you or are you happy to let your investments simply track the market? Either way, you need to make sure you understand the difference between active and passive fund management and the relative cost before you get started.
Any corporate action can lead to share price movement. It's important you understand the different types of corporate action a company might initiate and how these could affect your investments.
Looking for an investment with a reputation for delivering decent returns for reasonable charges? Investment trusts could be just the ticket.
Exchange Traded Funds (ETFs) are a popular type of passive investment giving investors access to a wide range of markets. Here’s our guide to how they work to help you understand what you’re investing in.
If you’re trying to decide which index tracker to invest in, make sure you understand the differences in the funds giving you exposure to the index.
The popularity of passive funds is growing, attracting investors with the promise of dramatically lower costs than actively managed alternatives.
The range of fund types has developed to cover all kinds of investments, markets and management styles. We explain how the main types of fund work, so you can pick the right investments for you.
Investment trusts might be able to deliver a steady income to investors, even in times of crisis. We explain how they work.
Once you’ve selected which investment fund you’d like to buy, you have the option to choose either the income or accumulation version of the fund – but what’s the difference and which should you choose?
Active or Passive Funds?
Learn what the differences are between active funds and passive funds and work out which type of fund is right for you.View our infographic
Planning for the long term
Successful investing requires careful planning. Whatever your future goals, get organised now with the help of these tips and tools.
Make better decisions
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