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Dear Visitor, I have researched the market for companies that allow investors to use their ISA allowance for this tax year. My research has led me to the Fidelity Funds Network, which I believe offers an opportunity for anyone who is looking for a potential return on their long-term investment. The shrewd investor knows this could be an ideal time to invest… Recent fluctuations on the stock-market have put many people off investing. However, the shrewd investor knows this could be an ideal time to invest especially if you are looking to potentially build long-term financial stability for yourself. You could possibly consider taking advantage of a stock-market linked investment, whilst looking to the future, as making wise investment decisions now could potentially help build your long-term financial prospects. What could this mean for you? If you buy at the right time when shares are priced at a lower level, then all you need to do is sit on your investment, until things start to improve and prices begin to rise. You can then sell your investment at a healthy profit. However, it's important to remember that markets do not go up overnight, which is why you need to take a medium to long-term view on your investment. Also if you have bought at the right time, the longer you keep your investment the more profit you might make when you come to sell it. You just need to ensure you always sell in a rising market. Obviously you should remember that whilst the stock-market offers the potential of good returns it is not guaranteed to rise and it is possible that you could make a loss, so it is not certain that you will make a profit. So now we are clear on the investment principles, I just need to tell you a bit more about exactly how it works and why I am suggesting the Funds Network ISA may be of interest to you. Thinking ahead and taking action now could lead you to a brighter future… To get the best out of the stock-market, you need to invest in a wide variety of companies, and perhaps overseas markets. This means you benefit from as many investment opportunities as possible, while spreading the risk you are exposed to. The theory sounds simple, but it is difficult and expensive to put it into practice on your own. Even if you have enough money to buy a wide spread of investments, it is unlikely that you will have the time or the resources to scour the world for good investment opportunities. For most of us, the solution is to invest in a pooled or mutual fund. Offering a wealth of opportunity - the choice is yours... Funds Network is Fidelity's investment supermarket that offers great choice and excellent value for money. It's no wonder that they're one of the most popular UK fund supermarkets with over 4 million so far invested via Funds Network.Source: Fidelity Website www.fidelity.co.uk April 2006. When choosing a fund type, you may like to think about the investments you already have. Bear in mind that diversification is generally considered a good principle. This simply means having a variety of different investments, so you enjoy the potential of a wide range of opportunities and spread your risk at the same time. The supermarket offers you:
Fidelity has forged partnerships with some of the UK 's leading fund providers to bring you an unrivalled choice of funds for your ISA. However, if you are a little unsure about which fund to choose Fidelity's experts has put together a range of fund packages that could suit your different investment objectives? The funds are selected to provide diversification within a particular investment type. For example, Star Trackers includes a range of three funds which opens up the worlds strongest markets (the US , the UK and Europe ), and a fourth which follows the international market. The packages have low initial charges and there's no extra charge for Fidelity's selection skills. If you prefer you can use Fidelity's package fund choices simply as ideas - for example, you can choose just two funds in a package, add in a favourite fund of your own, or invest in all the funds in different proportions What are the fund package choices? UK Essentials Fidelity's experts designed this package to offer investors a portfolio of core UK funds that have been expertly blended to balance growth, income and risk, whilst holding a mainstream of funds with the objective of long-term growth. Two of the five funds look for companies whose share price has the potential to rise significantly, while another two invest in companies paying attractive dividends. Completing the mix is a tracker fund that follows the FTSE All-Share Index. UK Dynamic Growth This package is designed to capitalise on the diversity of the UK economy, and offers higher growth potential in exchange for slightly more risk. One fund focuses on small companies and another on medium-sized companies. The other three follow varied investment strategies. What they have in common is a determination to uncover good growth prospects, regardless of the size of the company. Investing in smaller companies as well as blue chips is a higher-risk strategy, but the potential returns are attractive. Star Trackers This package offers a low-cost way to invest in four index-tracking funds with no initial charge. Three of these open up the world's strongest economic regions (the US , the UK and Europe ) to investors and the fourth follows the international market. If you are interested in a low-cost and instantly accessible way to invest in stock-markets worldwide and to take advantage of any long-term global economic recovery, then this could be your ideal package. You may also feel that at least part of your investment portfolio should be in tracker (or passive) funds. Now could be the time to take advangage... You can invest, this tax year, up to £7,000 in a Maxi or £3,000 in a Mini ISA, and receive all the income and gains on your investment tax-free. This gives you the opportunity of making either a single lump sum payment of £1,000 minimum, per fund, to start and £250 minimum thereafter, or £50, per fund, per month - if you prefer to make regular monthly contributions. Please bear in mind that the tax advantages of ISAs may change or be withdrawn. The benefit of the Fidelity Funds Network ISA is that if you are investing a lump sum in stocks and shares within a Maxi ISA, you have the opportunity of using F idelity's ‘phasing option'. This means that whilst your money is in a cash account, gaining interest, you can gradually invest in your chosen funds in six equal monthly instalments. This kind of investment should be viewed as a long-term savings plan. It's designed for people who prefer to invest in a broad range of stock-market linked investments, in return for the potential for real capital growth. In doing so you understand that you accept the risk of some capital loss. What is the benefit of phasing my investment? Generally speaking stock-markets are well known for their volatility, as well as providing the potential for good investment returns. One way to try and lessen the impact of the stock-markets highs and lows is to use what's called the ‘phasing option'. The way it works is very simple. Rather than investing all of your money in one go when the markets may, or may not be at an advantageous stage, the phasing option allows you to drip-feed your money into your ISA over a period of 6 months. This continuous method of purchasing means the unit price paid is likely to be the average price of that stock over the phasing time period. For example, if you invest a lump sum of £6,000 in your ISA account, Fidelity buy £1,000 of your chosen funds on the first business day of each month over the next six months. The phasing option has been designed specifically for investors who are concerned about the volatility of the stock market. This way of investing potentially lowers your exposure to risk by using a process known as 'Pound cost averaging'. So when you come to the end of your phasing term you would have purchased all accumulated units at a unit price which is the average of all of the monthly buying prices. And because you are committing funds on a regular basis, it is unlikely you will buy your units at the top end of the market. You must also consider that reducing the risk, reduces the potential for gain as well as the potential for loss and may mean that you will not receive the full value of the price rises between the start and end of your investment. How much profit you may make will depend on how low you bought it for, how long you keep it and how high the price goes? The simple principle behind the way to make money, from any stock-market investment, is to buy low and sell high. Please remember, past performance is no guide to future returns and the rate of future bonuses cannot be guaranteed. L evels, bases and relief from taxation are subject to change. Invest with confidence with the world's No 1 ...Fidelity For over 50 years', twenty million investors have trusted their money to the safety, security and experience of Fidelity's investment management skills. They are the world's largest fund management company, looking after over £659.5 billion worldwide and are recognised as a leader in this field. Financial strength, a wide range of funds, great service, and of course, performance - these are just a few of the things they believe investors are looking for when choosing an investment company. At Fidelity they believe they have a duty to satisfy themselves that the companies they invest in are managed legally and responsibly. This responsibility is part of share ownership and is a key element of their commitment always to act in the best interests of their clients.
Yours sincerely,
Gary Brown
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