The best options for a high income
Article Abstract:
UK investors seeking a high income should assess the level of risk they are prepared to take. Investors unwilling to accept any risk to their capital should use National Savings products or an account with a building society. Very high incomes tend to mean that capital erosion is likely, with the income coming from the investor's capital in instalments. Corporate bond personal equity plans (Peps) give some potential for capital growth, though there is some risk of capital erosion. They offer an income of between less than 6% to almost 9%, tax free.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Performance
Article Abstract:
UK personal equity plans vary widely in terms of performance. Some funds lose money, while others provide returns as high as 63%. Past performance gives some idea of future performance, and investors should ensure that they are comparing like with like. Investors should also assess the volatility of a fund and should assess spreads and charges, and the effect that these have on returns. Quartile performance is the way funds tend to be assessed and this relates to whether funds are in the best 25%.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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Performance
Article Abstract:
The performance of investment products is often judged in relation to past performance. This does not guarantee returns will be as good, but is a useful clue. Charging structures should be examined, and whether these have changed since performance was measured. Performance figures may assume that income is reinvested, but investors may not want to reinvest income. Future tax rates are also important, though personal equity plans can provide tax benefits.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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