Investment funds to thrive as savings rates remain low
04/02/2010
Rebecca Sargent
As low interest rates continue to hit savings accounts, Independent Financial Advisers (IFAs) are expecting a rush for riskier assets.
Research from Prudential has revealed that 72 per cent of IFAs are expecting an increase in the number of clients looking to invest in equity based investments over the next 12 months.
While interest rates have been gradually falling since the Bank of England reduced the base rate to a record low of 0.5 per cent 10 months ago, the stock market has rallied, finishing 2009 well above 5000.
However, an air of caution remains, as 73 per cent of IFAs expect their clients to choose investment funds that are cautious managed, while 66 per cent are expecting to see investment in defensive funds.
A further 70 per cent of IFAs questioned believe that investors will be looking to spread the risk by buying into multi-manager funds.
Commenting, Andy Brown, director of investment funds at Prudential said: "Given the performance of the markets in the second half of last year coupled with the ongoing poor rate of returns for cash based savings, it is perhaps unsurprising that IFAs expect to see clients looking to return to the stock market and buy into equity based investments in 2010.
"However, in reality not all equities will show equal growth over the coming 12 months and choosing the right time to invest in the right asset classes is key," he adds.
"We share the views of the IFAs surveyed and believe that good fund managers and balanced portfolios will do well in 2010 and beyond as investors look to build portfolios to deliver both performance and greater security."
The news comes after the Investment Management Association's latest figures, which show 2009 was a record year for investment funds under management with £25.8billion worth of net retail sales.
© Fair Investment Company Ltd
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Strong performing fund that aims to deliver a target income yield of 7% pa, also providing potential capital growth. Income is paid to you quarterly. 100% discount off initial charges.
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*Current Income Yields are Gross, Variable & Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund as at 30th October 2009.
*** Annual target yield is adjusted quarterly and will change as capital values rise or fall. Yield is variable and not guaranteed. Target yield quoted is net of basic rate tax. Information correct as of 30th October 2009.
Disclaimer (Please Read)
General risk warnings
- The list of funds/investments provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on a “non-advised sale” basis.
- Full details of the investments will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of the investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
Collective investments
- Collective investments such as unit trusts are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
- Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
Specific ISA warnings
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- Dividend income from a stocks and shares ISA will, under current legislation, be free of further liability to UK income tax whether this is paid out or automatically reinvested.
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Disclaimer (Please Read)
General risk warnings
- The list of funds/investments provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on a “non-advised sale” basis.
- Full details of the investments will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of the investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
Collective investments
- Collective investments such as unit trusts are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
- Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
Specific ISA warnings
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- Dividend income from a stocks and shares ISA will, under current legislation, be free of further liability to UK income tax whether this is paid out or automatically reinvested.
Hide Disclaimer
| Fidelity China Special Situations PLC | | £2,500 | |
| NEW LAUNCH NOW OPEN - To be managed by Anthony Bolton one of the UK's most renowned fund managers who believes the investment opportunity presented by China is just too good to miss. No Initial Charges if you invest by 5th April 2010. |
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The BlackRock Gold & General Fund aims to achieve long term capital growth by investing in gold, mining and precious metal related shares. 100% Discount on Initial Charge.
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Aims to supply you with long term capital growth by investing in a portfolio of shares in worldwide companies engaged in the production and marketing of commodities.
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| Allianz Bric All Stars Fund | | From £50 Per Month | |
Aims to achieve capital growth in the long term by investing mainly in the equity markets of Brazil, Russia, India and China.
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| First State Greater China Growth Fund | | From £50 Per Month | |
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Aims to provide you with a total return based on income and capital appreciation primarily through investment in certain kinds of UK real estate, property related securities, government and public securities and units in collective investment schemes.. Save up to 100% off initial charges.
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Disclaimer (Please Read)
General risk warnings
- The list of funds/investments provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on a “non-advised sale” basis.
- Full details of the investments will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of the investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
Collective investments
- Collective investments such as unit trusts are designed as medium to long term investments, for example at least five years.
- The value of your investment and the level of any income received from it can fall as well as rise and is not guaranteed and you may not get back the amount of your original investment.
- Any income yield quoted is correct at the time of going to press. Income yields vary and are only estimates. The actual dividend income that you receive will depend upon the income payable by the underlying assets of the fund and could change, either up or down, at any time. Dividend income from an ISA will, under current legislation, be free of UK income tax. Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
- If you choose a fund which invests overseas, there is the addition of “exchange rate” risk which could reduce any gains or increase losses if the currency moves against you.
- Dividend income paid from a fund not held within an ISA will be subject to income tax, which may or may not be reclaimable depending upon your circumstances and the type of investment. In some cases, there may be additional income tax to pay.
Specific ISA warnings
- The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
- Dividend income from a stocks and shares ISA will, under current legislation, be free of further liability to UK income tax whether this is paid out or automatically reinvested.
Hide Disclaimer