A strange quirk of investing is that sometimes good news is seen as bad news and February provided a perfect example of this.
Once considered a niche investment option, Venture Capital Trusts (VCTs) have seen a boom in demand over recent years, raising a total of £619m during the 2019-20 tax year, the third highest amount since 2006. Investors are attracted to these vehicles by the lucrative tax breaks and the innovative areas they invest in, but they don’t come without caveats.
Investors wishing to profit from property prices and rental yields don’t have to buy a house, when they can invest in property funds instead. Rather than heading to an estate agent, try an investment platform. You can snap up a stake in a property fund with much less money and hassle than buying a building.
It has been a subdued start to 2021 (and not just because of dry January). The emergence of new, faster spreading variants of COVID-19 is providing a dose of reality that we are not returning to a normalised environment anytime soon.
As sustainable investing grows in popularity, how can we distinguish truly sustainable companies and funds from greenwashing? To help investors with this question, a growing number of companies offer ratings which rank stocks or funds based on a variety of ESG metrics. However, these ratings can sometimes be more of a hindrance than a help.
Diversification can sound pretty dreary, but one way to achieve it is to let your investment portfolio travel the world (ok, only metaphorically). By spreading your eggs across different geographical baskets, you can minimise overall portfolio risk at the same time as gaining access to a range of opportunities, including some niche and exciting ones. Some countries can be accessed directly, while others tend to come in a set. This is our introduction to regional investing.
Brexit and COVID-19 were the key market drivers for the final month of what has been a historic year, for markets and the real world alike.
How do you marry a financial return with making the world a better place? Is it even possible or is it an oxymoron? Impact funds are here to prove that it can be done.