The Wayback Machine - https://web.archive.org/all/20041011051407/http://www.uk-online-finance.co.uk:80/uk_savings/stockmarket.htm
Investment in a stockmarket portfolio
Use our comdirect alliance to prosper
If you decide on individual choice, there is
a large number of companies that offer clients 'execution only' services at
reasonable prices. We rely on comdirect because we know their excellent track
record.
You can trade the world markets with comdirect and UK Online Finance
Our comdirect connection will enable you to trade
on any recognised market in the world, and also give access to other investment
media such as gilts, trusts, funds and commodities.
They allow you to place orders to buy or sell
whatever you wish with a central dealing operation either by phone or online.
comdirect also have a "fair deal" policy which means you pay the
same low flat fee for trades online or over the phone regardless of size of
trade or where you're dealing from. We recommend Comdirect as providers of
an inexpensive, reliable dealing service for execution only, but with the
added benefit of access to detailed economic and company information.
This will help you to decide on
your investments. If
you wish to go the discretionary route. However the simplest route
is to invest in an existing investment fund, which can be either a Unit
Trust,
or
an Investment Trust.
Each will be specifically geared towards one
flavour of investment, UK Smaller companies perhaps, or European High Income
maybe, so you can choose the mix of investment that most suits your needs.
The difference between the two is that with a Unit Trust, the units are bought
directly from the investment company, and your money is added to the pool
of money available to the fund manager for investment, so the fund is what
is known as open ended, meaning its size will vary as units are bought and
sold.
The fund is valued daily according to the actual
asset value of the portfolio, and the investment company quotes the prices
at which
it is prepared to sell or buy back the units, which is always
directly related to the asset value.
With an Investment Trust however,
the
pool of money is fixed and divided into shares which are traded
on
the
Stock
Exchange. The price will be related to the asset value of
the portfolio but the actual level will be determined by the balance between
buyers and sellers. This means that Investment Trusts can trade
at
substantial
discounts
to the value of their assets.
If you should decide, after due research to take a more traditional approach
to managing your savings, then follow this link to our pensions page.
