It takes years for investment professionals to train and become expert in their field, for this reason it's best practice to seek professional advice prior to investing in any bonds, equity or stocks. High-risk products especially can lose thousands of hard earned pounds in an instant for a nave investor and risk should be evaluated first and foremost before making any final decisions.
Stocks and shares are a common type of investment covered under the equity umbrella. Equity encompasses a broad range of terms from investment into one company or organisation (high risk) to a fund that represents global markets and thousands of companies, spreading the risk out.
For those individuals interested in secure investments with minimal risk there are a number of national savings products available on the market, so called because the government backs them and uses them as a method of borrowing. These policies tend to offer good tax benefits due to them being backed in this manner too. Some common examples are ISA's, Fixed Interest National Savings Certificates and Premium Bonds.
There are numerous TV programmes around now that attempt to unravel and clarify the complex nature of this next type of investment - property. Whether it's landlording, property shares, unit trusts or property development be aware of self-declared gurus out there and too-good-to-be-true deals, if they seem too good to be true they often are! Immensely complicated in nature the booms and consequent busts of the market can mean an innocent investor loses thousands of pounds in an instant.
Endowments as an investment policy combine life cover with investment and are widely used to repay mortgages. The basic premise behind these is that the borrower borrows money on an interest-only basis, takes out an endowment which provides life cover for the mortgage duration, a lump sum at the end of this period and then hopefully still has some extra money left over at the end. It assumes investment growth by the policy provider though and for this reason, can be high risk. Although previously rather more common, due to the risks of this type of policy becoming more apparent in recent years it is now not used as often as it was.
To conclude, for those looking to make an investment of some description, we strongly advise visiting a professional first so they can match your investment needs with the right policy to suit your needs.
Stocks and shares are a common type of investment covered under the equity umbrella. Equity encompasses a broad range of terms from investment into one company or organisation (high risk) to a fund that represents global markets and thousands of companies, spreading the risk out.
For those individuals interested in secure investments with minimal risk there are a number of national savings products available on the market, so called because the government backs them and uses them as a method of borrowing. These policies tend to offer good tax benefits due to them being backed in this manner too. Some common examples are ISA's, Fixed Interest National Savings Certificates and Premium Bonds.
There are numerous TV programmes around now that attempt to unravel and clarify the complex nature of this next type of investment - property. Whether it's landlording, property shares, unit trusts or property development be aware of self-declared gurus out there and too-good-to-be-true deals, if they seem too good to be true they often are! Immensely complicated in nature the booms and consequent busts of the market can mean an innocent investor loses thousands of pounds in an instant.
Endowments as an investment policy combine life cover with investment and are widely used to repay mortgages. The basic premise behind these is that the borrower borrows money on an interest-only basis, takes out an endowment which provides life cover for the mortgage duration, a lump sum at the end of this period and then hopefully still has some extra money left over at the end. It assumes investment growth by the policy provider though and for this reason, can be high risk. Although previously rather more common, due to the risks of this type of policy becoming more apparent in recent years it is now not used as often as it was.
To conclude, for those looking to make an investment of some description, we strongly advise visiting a professional first so they can match your investment needs with the right policy to suit your needs.
About the Author:
For advice on all the above and other financial services including personal pensions, SIPP's and bonds you can visit the Financial Planning Partners.
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