Investment Funds

Funds - what do we mean?

Funds are the building blocks of an investment portfolio. All the investment recommendations we make on this website are "pooled" or "collective investments", or, simply, "funds".

They are either Unit Trusts or open-ended collective companies (OEICs) or Investment Trusts.

A fund management company combines the money you invest with them with that of other investors in one large managed account. In this way they can spread your proportion widely over a diverse range of shares, stocks, bonds, property 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 resources to manage their money in this way.

All the funds we feature qualify for use with your annual Stocks and Shares ISA in this tax year. They can also be used to improve the performance of your ISA accounts from previous years and any PEPs you may have, regardless of where you originally bought them.

You can also use these funds to build your own investment portfolio (for sums over the ISA allowance), inclusion in your SIPPs, and for investing for children and grandchildren.

Investing in Unit Trusts and OEICs

Investors tend to 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. And you do not have to worry about limits or allowances. You may also invest in joint names, or designate the account.

This is useful, for example, when setting up an account to save on behalf of children and grandchildren. Investing in funds can be a useful way of building up a fund to meet school or university fees. 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 fund supermarket account via www.allenbridge.co.uk