Stocks and Shares
Whether it is because of Building Society changes or the privatisation of the once state owned utilities, it is far more common for people to own shares than it was just twenty years ago.
Equities make up the largest asset class of the Investment Sector, whether they are held by pension funds, insurance companies or private ownership.
Equities by nature rely on growth over a period of time, and traditionally will outperform all other areas of asset classes. Unlike fixed income, equities offer better protection against inflation, as companies can pass on their costs to customers.
The main reasons why investors may want to own shares are:
Our Investment Manager studies the financial markets and uses his expertise, gained over 20 years working for leading city investment houses, to select the appropriate investments for our clients needs, whether it be capital growth or income, taking into account the investors attitude to risk. No matter what investment’s are being made consideration has to be given to the tax position of the investor. Are they higher rate tax payers, what will be their capital gains and IHT liabilities, whether they have used their annual tax free ISA allowances?
Although the value of shares or the income from them cannot be guaranteed to rise, it has been the case that over the majority of five year periods throughout the 20th century that share values have risen. Many people that invested in shares have seen money grow faster than it would have done had it been invested in either Bank or Building Society deposits. The actual compound growth rate over the last 20 years was compounded at 8% against 4.4% cash over the same period. (Source: Barclays Capital Equity Gilt Study)
You must note however that investing in company shares offers you no guarantee of capital growth. The value of your investment could fall as well as rise and you may not get back the full amount invested - past performance is not a guide to future performance.
Equities make up the largest asset class of the Investment Sector, whether they are held by pension funds, insurance companies or private ownership.
Equities by nature rely on growth over a period of time, and traditionally will outperform all other areas of asset classes. Unlike fixed income, equities offer better protection against inflation, as companies can pass on their costs to customers.
The main reasons why investors may want to own shares are:
- to increase capital value over time, and
- dividends, which will hopefully increase as the company expands and increases profitability to provide a regular income.
Our Investment Manager studies the financial markets and uses his expertise, gained over 20 years working for leading city investment houses, to select the appropriate investments for our clients needs, whether it be capital growth or income, taking into account the investors attitude to risk. No matter what investment’s are being made consideration has to be given to the tax position of the investor. Are they higher rate tax payers, what will be their capital gains and IHT liabilities, whether they have used their annual tax free ISA allowances?
Although the value of shares or the income from them cannot be guaranteed to rise, it has been the case that over the majority of five year periods throughout the 20th century that share values have risen. Many people that invested in shares have seen money grow faster than it would have done had it been invested in either Bank or Building Society deposits. The actual compound growth rate over the last 20 years was compounded at 8% against 4.4% cash over the same period. (Source: Barclays Capital Equity Gilt Study)
You must note however that investing in company shares offers you no guarantee of capital growth. The value of your investment could fall as well as rise and you may not get back the full amount invested - past performance is not a guide to future performance.
Contact Us Now...
