Whatever style an investor adopts, the goal is always to identify and buy an asset in the hope and expectation that its price will increase; whilst the ambition may be simple enough, its achievement may be altogether trickier – how do you judge whether your investments are positioned to get the best possible return? – asks Christian Leeming.
Investment trusts were once dubbed the ‘best kept secret in the City’; not any more it seems, as investors have embraced the fact that some trusts have consistently increased their dividends over decades, and have done so in the face of enormous headwinds – just one of which is the current COVID-19 pandemic.1 - writes Hannah Barnaby
With all the caveats, P/E is likely to remain near the top of the list of commonly used valuation measures for shares in a wide range of, though not all sectors. It embraces complex considerations within a simple formula. It has an intuitive validity which is borne out by much more complex analysis, but is universally understood.’ writes Christian Leeming
DIY Investor is dedicated to long term wealth creation; sister site Muckle wears its heart on its sleeve in its mission to educate and engage the next generation of investors – ‘mony a mickle maks a muckle’ is pretty much Savings and Investment 101 – writes Hannah Barnaby.
Becoming a DIY investor means making your investment decisions without having to pay for financial advice. This might seem a daunting prospect, but this article will help you by equipping you with the basics of portfolio construction, management and strategy.
Anyone with even a passing knowledge of the economic landscape of the last decade won’t need reminding that the value of investments can go down as well as up. One response to the possible volatility of financial markets would be to put all your cash in the bank as, in theory, this should be protected by a national compensation scheme.
An Individual Savings Account (ISA) is a flexible and tax-efficient vehicle. There are a number of ISA options available to investors. One of these is a £20,000 annual allowance for a cash ISA, which operates in much the same way as a typical savings account. Another is a stocks and shares ISA, which allows you to invest in a range of different asset classes and instruments.
When it comes to dividends, understanding the difference between dividend yield and dividend growth can be a key factor when deciding what companies to invest in. Dividend yield is calculated by dividing the annual dividend paid per individual share by the current share price
Before getting into the details of what information is available to research for certain types of investments, deciding exactly what type of investment is right for you should be the very first piece of research you do.
Everyone who invests in the stock market has to deal with some measure of volatility: the fact that their investments will go up as well as down. In times of global uncertainty, the possibility of volatility is higher than usual, meaning that many investors have had a rollercoaster ride.