Investments

There are many different types of savings & investment products available. It is important to review each of your options depending on your own personal objectives and attitude to risk. An investment portfolio must also take into account tax opportunities & implications.

With such a bewildering array of investment possibilities out there it is important to seek professional advice.

Financial planning is an ongoing process & we aim to meet you regularly to ensure that your objectives are being met.

National Savings Products

These are amongst the safest investments available & have the lowest risk. National Savings raises money on behalf of the government & are backed by the Treasury so investments are 100% secure.

While National Savings Products are an extremely safe way of investing, returns are usually unspectacular. Some products may tie up your funds for long periods of time and in some cases are tax-free.

Some of the National Savings Products available include Premium Bonds, Income Bonds, Children’s Bonds & Savings Certificates.

Individual Savings Accounts (ISAs)

An ISA is simply a wrapper around a savings or investment product to make it more tax efficient. Typically the savings element of an ISA is a deposit account & the investment element is made up of collective investments, equities, bonds & insurance policies.

Bonds & Gilts

Investing in Bonds & Gilts is generally a safe investment although the value can fall as well as rise.

Corporate Bonds are investments based on loans offered by private companies and are rated by the ability of the issuer to maintain interest payments & repay the loan. A corporate Bond fund will invest in a wide range of loans, each of which has an ‘investment grade’. The volatility a bond has will determine its grade & expected yield. Some funds invest in Government Bonds (Gilts) which are usually less volatile but offer lower returns.

Equities

Investing in equities involves purchasing stocks & shares of individual companies. There is the possibility of gaining a proportion of the companies after tax profits (dividends) and also a gain in each share value if the company does well.

This type of investment offers the highest return for your Investment but you could risk losing your investment if the Price of shares falls.

Unit Trusts

A unit trust is simply a pool of investors’ money, which buys a spread of different investments. The trust is then divided into units & the number of units you buy represents your share of the Trust.

The volatility of any Unit Trust depends on the spread of investments within the Trust & it is important to understand your objectives & attitude to risk before deciding on which Trust to invest.

Open Ended Investment Companies

This is where you buy shares in a company that manages investments.

Offshore Funds

To take advantage of lower tax rates your money is invested outside the UK.

At Principle Investment Management we continually monitor the investment market to ensure we are able to provide the most up to date & comprehensive advice.

Complete an online enquiry form or call us on 01457 859 139 to discuss your requirements.