What would you like us to do with the funds you've selected
This shows the number of portfolios you hold. Portfolios can be constructed from Unit Trusts & OEICs,IMA Unit Trusts & OEICs,Investment Trusts,Pension Funds,Life Funds,Offshore Funds,Exchange Traded Funds and cash. Holdings and acquisition costs can be recorded so that profits/losses can be calculated. These can be calculated in terms of a number of base currencies. Overall portfolio values, as well as portfolio constituents, can be made the subject of alerts.
You have one watchlist, and this shows you the number of items currently stored in the watchlist. Items stored here do not have holdings records, so this list simply monitors the price of items held, which can also be subject to alerts
This is designed to be a temporary collection of items selected by you for further analysis in the tools section. Items can be subsequently transferred from the Basket to the Watchlist or Portfolio.
What proportion of your ISA is made up of direct stock positions?
Picking a manager is key in actively managed funds as costs matter. Paying a total expense ratio of around 2 per cent when equity returns are 10 per cent effectively wipes out the equity risk premium – essentially a measure of the additional return investors will demand in return for buying equities. Such costs reinforce the need to choose managers who will outperform.
The costs of passive funds are low because the fund is not being "actively managed". But, there is still an element of manager risk and tracking methods vary, ranging from full replication - holding every stock in an index in proportion - to partial replication - holding a sample of the index, in order to reduce dealing costs. Timing of buying and selling can also affect performance.
Choosing the passive route provides peace of mind in that the investor knows in advance they will receive a return approximately in line with the market the fund is tracking, while choosing an actively managed fund will require the investor to monitor the fund’s ongoing performance, and places the emphasis on the manager’s ability to outperform the market. Investors opting for the latter approach should ensure they spend the time and care required to pick the better performing managers.
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13:00 | Monday, January 20, 2014