As Mark Twain reputedly said: “History doesn’t repeat itself, but it often rhymes”, and when it comes to the stockmarket, there are certain trends and patterns evident in which history is clearly rhyming.
DIY Investor Toolkit
As sure as night follows day, in the weeks following the end of the tax year various financial firms focus their attention on highlighting the benefits of investing your Isa at the start of the new tax year.
Five and a half years ago, I decided to get some “skin in the game” and open my first stocks and shares Isa account.
The next six weeks or so are typically the busiest time of the year for stockbrokers, as investors try to maximise their Isa contributions ahead of the tax year end. For those looking for ideas on funds to invest in, the first decision to make is to whether to choose an active or a passive fund.
As part of “Talk Money Week”, an initiative that aims to get more people talking about their finances as a way of improving money management skills in the UK, we run through 11 key investment terms that investors need to get to grips with.
Most fund managers have their own ‘investment checklist’, which is essentially a wishlist of attributes they like to see embedded in a business.
Whether you prefer to invest in funds, shares or simply to passively “buy the market”, there is one thing that you should not underestimate: the power of compound interest, achieved through investing for the long term.
DIY Investor Toolkit: There’s a certain comfort factor behind following the crowd, but when it comes to funds, size matters. We explain why.
Here is a summary of how it works, and some factors to weigh up before opening one.