For those unimpressed by the paltry yields on cash, investment funds and trusts tend to be the first port of call for investors. These give investors the chance to park their cash with experienced professional investors who (hopefully) provide a return in excess of what the bank can offer. While investing in companies is a risky business for investors without the time, resources and expertise to monitor them on a weekly or even daily basis, experts suggest they are a good way to add value around the sides – as long as they don’t dominate your portfolio.
Stocks have the potential to double and even triple in value much faster than funds, but the risks of losing money are also much higher. Just look at online retailer ASOS’s fall from grace in 2014.
Performance of stock over 5yrs
Source: FE Analytics
If you are thinking about putting some money aside for the long-term, we want to hear about it.
Perhaps you’re interested in a large cap dividend-payer such as GlaxoSmithKline or BHP Billiton that will give you a steady level of income in retirement, as well as some capital growth on the side? How about a small or mid cap that has been caught on its heels in the recent sell-off, or a micro cap that you’re backing to be the next ASOS? Well – the next ASOS before it fell more than 50 per cent earlier this year, anyway…
Maybe you’re one for backing the stocks popular with star managers, as a recent FE Trustnet article looked at in more detail.
If you want to have you stock-picks analysed by industry experts including The Share Centre’s Helal Miah (pictured), please leave a comment below including an explanation of why you’ve made your choices, or email us at editorial@financialexpress.net.