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0131 6206202
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0131 6206202
Collective investments are also known as unit trusts, investment trusts and OEICs. In all cases an individual is able to invest in a basket of shares of different companies, that way spreading his or her equity investment risk.
With a collective investment your money is pooled, along with that of other investors, to create a large capital sum. Professional fund managers then use this capital sum to build up a large actively managed portfolio of investments. This approach enables you, indirectly, to hold a wide range of stocks and shares in a way which would not be practical for an individual investor, whilst minimising the effects on your capital of fluctuations in individual share values.
Collectives can also invest in fixed interest instruments. These include UK government stock, also known as gilt edged stock or "gilts" for short. Corporate bonds are also fixed interest instruments and both represent direct borrowing on the part of the issuer of the bonds. They are referred to as "fixed interest" because their cost of borrowing is fixed, while the price of the bonds themselves may float up or down depending on supply and demand.
Traditionally, fixed interest investments have been regarded as a safe option. However it is important to remember that not only do they fluctuate in price, but also that the investor risks that the issuer may not be able to pay the interest (coupon) on the bonds, or the principal when the bonds mature.
With a collective investment you have access to expert full time investment management, reducing the risk and complexities of direct investment into equities. Your money becomes part of a much larger investment portfolio with much larger individual investments, as well as more individual holdings.
COLLECTIVE INVESTMENTS SHOULD BE VIEWED AS MEDIUM TO LONG TERM INVESTMENTS.
THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.
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Orchard Independent Ltd
12 Dalziel Place
Edinburgh
Scotland
EH7 5TR
T: 0131 6206202
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Orchard Independent Ltd is an appointed representative of TenetConnect Services Ltd which is authorised and regulated by the Financial Conduct Authority. TenetConnect Services Ltd is entered on the Financial Services Register (http://www.fca.org.uk/register) under 150643.
Orchard Independent Ltd. Trading and registered office address: 12 Dalziel Place, Edinburgh, EH7 5TR. Telephone - 0131 620 6202.
Registered in Scotland - Company No. SC355263
The guidance and/or advice contained within this website is/are subject to the UK regulatory regime and is/are therefore primarily targeted at consumers based in the UK.
Director - Jon Carter
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