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Showing posts from September, 2020

The very short and incomplete intro to types investments

Investments: shares, funds, bonds, cash, property, foreign currency, collectibles, commodities, contracts for difference (derivatives), etc. Bonds: also called fixed interest securities, are loans to a company or government (the latter are also called gilts). Shares: part of a company. Funds: a specialist manager who pools the money from its investors to buy shares and others. Funds can invest in almost anything – shares, bonds, energy, gold, oil, debt, etc. All funds have a theme – anything from geography (European, Japanese, emerging markets), industry (green companies, utility firms, industrial businesses), types of investment (shares, corporate bonds, gilts), to the size of the company. Investment Trusts: a type of fund. They're a closed ended investment that issues a fixed number of shares. OEIC: "Open Ended Investment Company", a type of fund. Open Ended means shares are issued each time someone invests and you can buy or sell shares whenever you want...