Newton Exempt Index Linked Gilt Fund

Advantages: Cheap products, easy to invest in, good dividend yield, unlike shares in a company will never go bust
Disadvantages: Index concentrated in 10 companies meaning more risk, not for ethical investors, sensitive to oil prices

.... When you invest in a product linked to the FTSE 100 index you will be buying a proportion of the 100 companies that make up the index. Each company contained within the FTSE 100 is given a percentage weighting depending on its Market value or market capitalisation (this figure is the total number of shares listed multiplied by the share price). As a result of this the larger the market capitalisation of the company the larger the percentage of FTSE 100 index it takes up. Currently the largest company within the FTSE 100 index is the Oil giant BP. Listed below are the top 10 companies contained within the index (information taken from www.ishares.net): 1 - BP PLC - Oil - 9.8% 2 - HSBC HOLDINGS - Banking - 7.58% 3 - VODAFONE GROUP - Telecomms - 6.83% 4 - GLAXOSMITHKLINE - Pharmaceuticals - 6.4% 5 - ROYAL DUTCH SHELL PLC-A SHARES - Oil - 5... Read review

Ciao members have rated this review on average very helpful

Advantages: Less riskier then equities provides a secure regular income
Disadvantages: provides potenailly far less payback than equity

...A bond is simply an IOU. It is an mutal agreement under which a sum is repaid to the investor at some future date. By ownership of a bond you are in turn borrowing money to the person (banks or governments usually) issuing the bond. These bonds commonly pay a fixed rate of interest over a specified time and then repay the par-value after a fixed period when the bond matures. Gilt-edged securities are a form of long-term government borrowing.), or a public company (corporate bonds). UK bonds are usually and generally considered as very secure due to many of the issuers being well established institutions also the fact that they are all regulated by the FSA which maintains and controls the financial sector. I believe that bonds provide far more security unlike equity which are generally volatile and can be affected hugely by speculation... Read review

Ciao members have rated this review on average off topic

Advantages: tracks ftse uk index,low charges, spread risk , can be ISA'd
Disadvantages: covers all sectors, can miss out on sector over performance

...to look? Well Fidelity Moneybuilder Index Fund fits the bill for me. It is available from Fidelity's Funds Network which is a supermarket of investment funds with over 950 different funds from 55 fund managers. Fidelity Moneybuilder UK index ------------------------------------------ Aims to track the FTSE all share index which means it invests in the Large FTSE 100 companies down to smaller companies in the main market, but not AIM market stocks. Performance On the fidelity website you have a very useful feature that gives you an overview of each fund. Over five years the fund has returned 4.9% now remember that the market fell 28% from 2001-2002 over three years the fund returned 23.6% and over a year 27% Charges Now this is where Fidelity score over the competition. There is no initial charge on ISA and ISA/PEP transfers or non ISA... Read review

Ciao members have rated this review on average helpful