Collective investments are a medium to long-term tax-efficient investment, such as Unit Trusts (UTs) and Open Ended Investment Companies (OEICs). These investments are a cost-effective and easy way to invest in equities either in a lump sum or by monthly direct debit.
Collective investments are a pooled investment fund which means that thousands of investors contribute together to purchase equities, benefiting from greater security and economies of scale compared to investing individually in equities. Collective investments are managed by a fund manager employed by a financial institution such as bank, insurance company or specialist fund house.
Depending on the level of risk and purpose of the investment, collective investments are usually categorised into three types:
1. Income
2. Growth
3. Income and Growth
Essentially each of these types of funds carry a greater risk to capital but with a greater potential profit than cash on deposit.
Collective investments can be used as suitable investments for 'Stocks and Shares' component of an Individual Savings Account (ISA), providing the opportunity to benefit from a stock market investment free from Income Tax and Capital Gains liability, based on current legislation.
The value of your investments and any income generated from them can go down as well as up.
To find out more about how GEM can help you with collective investments,
call us now on 020 8543 0111 or contact us here.
Request a call back from one of our consultants by
filling your details in the form below
© Gem & Co Financial Services LLP 2009