|
Anyone thinking of investing has a choice
of thousands of products around the world and various routes to take
that will assist them reach a decision. Faced with such a daunting task,
how do you decide where to start?
We hope the following information will
point you in the right direction and help focus your mind on what is
right for you.
If you require guidance and advice about
your investment you have two options:- |
 |
- INDEPENDENT FINANCIAL ADVISERS can
give advice on products from a range of different companies. These
advisers can come from small and large organisations; the latter
usually have their own research facilities. You can telephone
0800 085 3250 or visit www.unbiased.co.uk
to get a list of advisers in your local area. You
will also see these companies advertise in the financial sections of
various newspapers.
|
|
Both types of advisers should conduct
an in-depth interview to find out exactly what your financial situation
is. They should also establish your views on the degree of risk you are
prepared to take and what you want your investment to produce for you,
e.g. income or growth or a combination of both.
Following the interview, you should receive a written
report outlining their advice and stating what commission their company
would receive from the investment of your money. Most advisers are
salaried but their company survives on the commission from sales plus
commission for ongoing advice. If you choose to approach the companies
they recommend direct, you will not receive the quoted commission rates
but you might be lucky and negotiate a rebate in commission from the
adviser.
Both advisers could also operate on a fee-based system
but this is normally only beneficial with quite large amounts of money.
We then move on to:- |
|
 |
- DISCOUNT BROKERS, sometimes referred to as
execution only advisers. They do not
normally give specific advice but some provide research material and
newsletters to help you decide what investment to choose You should
have some investment knowledge, or some idea of what product to
select before proceeding down this route. On the plus side you save
money by getting commission rebated to you.
- FUND SUPERMARKETS normally
accessed via the Internet, allow you to invest your £7,000 ISA
allowance between different funds – this is the latest route and
it is becoming quite popular with Internet users.
|
|
Whatever route you choose, do take a
personal interest in your investments, things change quickly in the
financial scene and you and your adviser, if appropriate, must be
prepared to alter the investment to allow you to gain maximum return on
your money.
We at Silverpot hope the above information has cleared some of the
mystique about investing.
GOOD LUCK! |
Top