Cash funds for caution and extra income
Article Abstract:
Cash funds are a useful investment vehicle for United Kingdom investors who are concerned about market volatility and do not wish to dispose of investments in collective funds. UK investment managers have seen large flows into unit trusts focusing on money markets. Such unit trusts are less risky than investments based on equities, and they often offer better value than deposit accounts from building societies and banks. Cautious cash funds restrict themselves to deposit accounts, and more aggressive funds also use short-dated debt. They can pool investors' money and obtain good fixed-rate deals when rates are dropping.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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Bear funds - just a cock and bull story?
Article Abstract:
Bear funds use derivatives and allow hedging against drops in stock prices. They use futures which involve a commitment to purchase or sell an asset at a set price on a given date, so profits can be made for a small outlay, but losses may also result. Call options may also be used. These funds are geared to investors with strong views on short-term trends in markets. They are not long-term investments. Bull funds also exist and use derivatives, with investors benefiting if stock prices rise, and making losses if prices drop. The profits and losses are more than if stocks themselves were purchased.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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