What does investing ethically mean? March 12, 2018 | City Talk Ethical or socially responsible investing encourages corporate behaviour that promotes environmental stewardship, consumer protection and human rights. In addition, it usually means actively avoiding businesses involved in such areas as alcohol, tobacco, gambling, weapons or animal testing. The main approaches funds use to ethical investing are: Negative screening – avoiding companies engaged in what are [...]
How to start investing March 9, 2018 | City Talk A sense of trepidation is normal for first-time investors. While choosing, managing and monitoring your own investments has never been simpler, those new to investing should first get to grips with the basics in order to help avoid any nasty surprises. Here are some of the main factors you should consider. Set your priorities before [...]
Last Week in the City: Trump signs order for tariffs March 9, 2018 | City Talk This week US President Donald Trump signed off on new tariffs on steel and aluminium imports, Trinity Mirror revealed plans to rebrand, and the European Central Bank took a further step towards ending stimulus measures. The FTSE 100 rose 1.9 per cent over the week by mid-session on Friday. Economics China will pursue annual growth [...]
How to help keep your investing charges low March 9, 2018 | City Talk Investors should always be conscious of charges incurred in running their portfolio. Costs such as annual management charges on investment products, platform fees and share dealing charges can all eat into your investment returns. Say you invest £10,000 over 10 years with an annual return of 5%. With no charges your £10,000 will have increased [...]
Why economic growth (and rates) could increase faster than expected March 8, 2018 | City Talk Donald Trump’s plan to boost the US government’s spending by $300 billion has added fuel to a US and global economy already firing on all cylinders. The effect of the Bipartisan Budget Act of 2018 which detailed these plans (which also include a further $90 billion in disaster relief spending) will be felt far beyond [...]
What ‘dividend cover’ says about the safety of stock market income March 8, 2018 | City Talk The income paid by stock market companies to investors could be about to come under pressure. The twice yearly payments made to investors can be a vital income supplement for those in retirement. Others reinvest the dividends to boost long-term returns. But research compiled by Schroders shows European and US companies are diverting a [...]
Five drawdown approaches March 8, 2018 | City Talk What is drawdown? The pension freedoms introduced in 2016 mean more investors can keep their pension funds invested in retirement and draw out money as they need it, instead of buying an annuity that guarantees them an income for life. An individual moving into pension drawdown can usually take up to 25% of the amount [...]
What are the risks associated with investing? March 8, 2018 | City Talk We all take a certain amount of risk in life. An existence with no risk would likely be a rather boring one. But it always pays to learn about the risks we might face. Understanding risks helps us avoid them, or else manage our behaviour to try and control them. When it comes to investing [...]
Cash vs stock market: the difference in returns since Isas began March 7, 2018 | City Talk Saving money into a cash Isa over the last 18 years would have returned four times less than a stocks and shares Isa, according to research by Schroders. Since 2009, the average savings account could even have lost you money. But while stocks and shares returns may have been higher, they have also been more [...]
Five reasons to invest in funds March 7, 2018 | City Talk Save time Some investors are highly active and enjoy researching and choosing their own individual shares, bonds and other investments. However, it takes time and discipline to monitor the stock market in detail and react appropriately to company news. Collective funds such as unit trusts and investment trusts can offer a convenient solution. These spread [...]