Should you invest in exchange traded funds or are they too risky?
Exchange traded funds are similar to low cost trackers, but some can be risky.
Checked 2nd January 2012
You may not have heard of exchange traded funds until the story broke about the – alleged – rogue trader at UBS. He’s supposed to have run up his £1 billion plus loss by using exchange traded funds (or ETFs, as they’re known). ETFs are relatively recent entrants to the market but have grown in popularity over the last few years. In principle, they should let you invest in companies or assets that make up a particular index, but some can be pretty risky. What should you look for?
Understanding dividends; how to ratchet up the return from share investments.
If you invest in shares or share-based funds, dividends can make all the difference.
Checked 2nd January 2012
There’s been a lot of focus on the price of shares recently (which have – far too often – been plummeting pretty quickly) but if you invest in shares, either because you’ve bought shares in individual companies or through a share-based fund, it’s likely that some of your return will come from dividends. What are they and how important are they in the current climate?
Absolute return funds promise a return – no matter what the stockmarket is doing. But do they deliver?
If you like the idea of getting a return whether shares are rising or falling then absolute return funds might appeal. But you may be disappointed.
Checked 2nd January 2012
We're all familiar with the phrase 'shares can go down as well as up', but 'absolute return' investment funds aim to turn that on its head. They claim they can produce this return by buying a mixture of shares, cash and derivatives (which are often used to minimise risk or to boost the return). But their management charges can be high and some believe investors can end up paying hefty fees without getting the performance they expect.
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