09:47 25 January 2013
There are several ways to invest your money in preparation for your future. There are pension plans, stock trading, share dealing, etc. But if you’re someone who is not very familiar with investingor if you haven’t tried it before, OEICs are great options.
Open-Ended Investment Companies (OEICs) are type of investments that benefit all types of investors. However, they are more advantageous to smaller investors.
If you have very little amount to start with, it will be difficult for you to diversify your portfolio. More likely, you’ll be able to buy shares from just a couple of companies. Not diversifying your portfolio is very dangerous in stock market and share dealing.
Why? If the companies you’re chosen are not performing well, your portfolio will be damaged beyond repair.
OEICs will protect you from such scenario. Fund managers invest money coming from different investors and put them on different markets to minimise the risks of losing and increase the chances of making profits for their investors.
As OEICs are managed by professional fund managers who have the needed expertise and experience, you can be assured that your money is in good hands.
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