Tracking funds - time for a spring clean
Article Abstract:
United Kingdom tracking funds have performed well in the five years to 1998 and tend to involve a low risk approach. There is a danger that investors can be caught by a market downturn. There is also the problem of tracking error, which is more likely to be a problem with smaller funds. Indexes with fewer companies, like the FTSE 100, are easier to track than are indexes with more companies. Tracking funds can be used with aggressive active funds to achieve a balance.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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What you pay
Article Abstract:
Competition among UK unit trust providers has led to a proliferation of charging structures. Some unit trusts charge exit fees rather than entry fees, and some levy no annual charges. Minimum investment levels tend to vary from 20 pounds sterling to 50 pounds sterling monthly and from 500 pounds to 1,000 pounds for lump sums. Capital gains tax is not levied inside funds, while basic rate income tax is levied on unit trusts' dividends.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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