Education – How do things work? (In plain English please)

We’ve set ourselves the tough task here to explain things ordinary investors struggle with in a simple and easy way to understand.

Behind almost every financial or investment theory or practice, that come with a funky set of hard to fathom terms is a simple concept, originally designed to meet a pressing and basic need.

What we try and do here is to take it back to its origins to explain to you in simply terms, important investment concepts that will help make you a more informed, and better investor.

Here are some examples of what we mean by originating from a more basic need:

  • Shares (also known as equities and stocks in the US) – To enable companies to raise money for investment and to sell the business to others
  • Bonds/Fixed Interest – More secure and long term way to issues loans or debt
  • Investment Trusts – way back in 1868 they addressed the problem of small investors getting ripped off by enabling them to come together and spread the risk.
  • Pensions – In the modern era, pension saving schemes were established as an enticement to individuals to save for their own retirement so that the state wouldn’t need to provide for them.

We will continuously over time add to the range of topics covered in this section but if you would like us to cover something please let us know. Either use the contact form on the front page (right column) or email enquiries@whichinvestmenttrust.com.


Investment Trust University – The complete guide to Investment Trusts

In a six part series Sarah Godfrey from Edison Investment Research explains the basic concepts and intricacies of investment trusts.

Part 1: What is an Investment Trust? – An introduction to the UK’s longest-established collective investment schemes.

Part 2: Types of investment trusts – A guide to the different geographical and asset class focuses available, from UK shares to property and private equity.

Part 3: How to buy and sell investment trusts – Using stockbrokers, savings schemes, online investment platforms and investing through an ISA or pension.

Part 4: The Income Advantage – Some investment trusts have raised their dividends each year for more than four decades – find out how. 

Part 5: Discounts and Premiums – Understanding how investment trust share prices are affected by supply and demand. 

Part 6: Managing Discounts and Premiums – A guide to discount control mechanisms and the options for issuing new shares.***Coming soon***


Top 10 tips on where to start as a new investor?

This easy read guide introduces new investors to not only the basic concepts in investing, but also to tax considerations, wrappers, and provides historical evidence on how different assets classes have performed over time. Top 10 Tips for New Investors.


Investment Trust Saving Schemes

They’re not especially well known, but they are loved by many investors because they’re cheap, easy to use and well suited to regular investing. Charles Marshman is a fan and has produced this handy guide: Investment Trust Saving Schemes.


Masterclass: Split Capital Investment Trusts

Under researched with the potential to be very profitable. James Pigott, an Independent Financial Adviser and owner of Pigotts Investments introduces and explains Split Cap investment trusts. 

Click the following link to access the guide and the illuminating forum posts below. Split Cap Trusts.


Bonds/Fixed Interest

Our two part series introduces an area of investing that is many times more popular than equities when judged by the amount of investor money it attracts alone. This, even though investors generally find Bonds more difficult to understand.

Part one is here: The simple guide to understanding Bonds (Part 1)

Part two is here: The simple guide to understanding Bonds (Part 2)


Pension schemes

Pension saving plans in the UK are probably one of the greatest concepts to be sorely misunderstood by so many.

For Governments and tax payers they function as a sort of insurance policy against tax payers picking up the bill for looking after people in retirement. Their importance to society is such that they offer very generous tax incentives to encourage you to save.

This article explains some of the basic features and advantages of pensions Ignorance is destroying ordinary investors pension pots


UK Housing Market

The high cost of UK housing presents challenges for those who own their own home and those who don’t.

Part of the difficulty, especially for those who don’t own a home and who are concerned about paying so much to get on the ladder, is in knowing where prices might be in say five years time. Well that is a difficult if not impossible call to make but there are important things we can learn from history, that just might shake us out of our belief that this is way it must be in housing, or the way it will be forever.  Time for the Government to enter the UK house building market?


 

 

 

 

 

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