Investment Funds

Funds - what do we mean?

Funds are one of the building blocks of an investment portfolio. They are either Unit Trusts, open-ended investment companies (OEICs) or Investment Trusts. All the investments we high light on this website are "pooled" or "collective investments", or, to put it simply, "funds".

A fund management company 'pools' the money you invest with them with that of other investors and invests this in accordance with the fund's strategy. In this way they can spread your investment over a diverse range of shares, stocks, bonds, properties or other funds that you may not ordinarily be able to afford or have access to.

The fund's assets are managed by an investment manager who aims to achieve returns as defined by the fund policy and its stated objectives. Depending on the size and expertise of the fund management company they will be able to offer all sorts of funds that invest in different stockmarkets and global regions.

Few private investors would have the time or be able to draw on the same range of expertise or resources to manage their own money in this way.

You can also use the funds listed in our research to build your own investment portfolio. You can use our research to select better performing alternatives to any underperforming funds you may already hold.

Investing in Unit Trusts and OEICs

Investors often forget that units may still be purchased in funds in the normal manner, over and above the ISA allowance. There is no minimum length of time to hold on to the units (although these funds should be seen as a medium to long term investment), and you do not have to worry about limits or allowances. You may also invest in joint names, or designate the account (often used when investing for children and grandchildren) or use our research to build a portfolio for your SIPP.

Investing in funds can be a useful way of building up a fund to meet school or university fees. Though you should remember that while they may give good growth potential you could get back less than you invested. The assets of a private or family trust may also be invested in units. You will need to consult a solicitor on how to establish the trust. Once established, the trustees can open an account with us and purchase units at our special discount rates.

All the funds and portfolios featured can be invested in for these purposes and using a fund supermarket account will make it even simpler. You can also purchase units online using either a Cofunds or FundsNetwork account via www.allenbridge.co.uk