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idiots guide

edited 30 November -1 at 1:00AM in Savings & Investments
2 replies 644 views
westy69westy69 Forumite
161 posts
edited 30 November -1 at 1:00AM in Savings & Investments
could somebody please explain in simple terms uk growth funds to me ie jupiter, Invesco Perpetual, Neptune etc i appreciate these are not low risk but they sound quite interesting for maybe a 5-10K investment possibly in the future i have had a look at jupiters website but it doesnt really say exactly what they are, i think they are managed uk share funds? do i need an IFA to allow me into one of these or can i apply myself?

thanks
i am new to this investing business and value peoples experience/opinions as a learning tool - thank you

Replies

  • purchpurch Forumite
    9.9K posts
    Growth Funds tend to focus on those companies that are perceived to have potential to increase future profits, rather than focusing on current profits, large dividends, share buy-bucks etc etc.

    Growth shares tend to pay lower dividends, as they reinvest profits to pay for future growth (borrowing from your shareholders is often cheaper than borrowing in the traditional way)...but theoretically if all goes to plan should see a faster growth in share value (i.e. Capital growth as opposed to Income growth)

    Of course as in all Fund investing not all Growth Funds, ( or Growth Shares) focus on the same sectors, industries or type of company, so research is essential.

    You can invest in any Fund without using an IFA.

    Fund Supermarket, Discount Broker or even directly with the Fund Manager (although strangely this doesn't mean you lower the charges)
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • Much cheaper to go through a discount broker but there are around 300 funds in the UK All Companies sector so a bit of reading around some of the main brokers might be an idea as this will give you some idea of the funds which are generally in favour.
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