CAPITAL INVESTMENT:
More and more people now recognize the benefits of investment in “real†assets such as stocks and shares. While bank deposits are a sensible investment for short-term savings and as a source of emergency cash, in the medium to long-term it is investments in real assets, which have historically given greatest growth.
But the sheer diversity of global stock markets generally puts such investment opportunities outside the reach of most individual investors. The typical investor does not have the market knowledge or trading experience to take advantage of these markets and, in any event, could soon be overwhelmed by the paperwork, cost and time involved in keeping track of an extensive portfolio.
For the vast majority of investors, investment through “pooled funds†such as unit trusts, offers a cost effective solution, which can bring the benefits of a worldwide investment portfolio within reach. Pooled funds operate by grouping the capital of many investors, enabling them to benefit from professional investment management and reduce the potential risks of stock market investment by avoiding over-dependence on particular stocks, markets or geographical sectors.
The investment manager is also able to place deals more cost effectively because he is trading stocks in large quantities.
When building a portfolio, it can be wise to spread the investment over a variety of funds, creating the preferred balance between risk and reward.
Invest in a very efficient way. Take advantage of time. It is your best partner!
