Week 5: Savings and Investment - Part 2, Episode 10
Share Radio & Open University Business School
'Try not to become a person of success but rather to become a person of value'.
to Managing My Money presented by Glen Goodman and Annie Weston
Note: Premium Bonds are not really bonds!
* Managed for you
* Diversify & should reduce your risk
* Enable investment:
- in specific sectors & regions
- tracked against indexes
* Management fees apply
* 'Open-ended': prices follow the value of what they're invested in (Net Asset Value) - such as Unit Trusts, OEICs and Exchange Traded Funds
* 'Closed-ended': prices reflect demand & supply for the fund, so usually trade at a discount or premium to Net Asset Value - such as Invesment Trusts
£100 invested in 1945 in these was worth this in 2012:
* Investment income and capital gain have thresholds before you have to pay tax
* Then you pay tax on a progressive basis
* Except in tax-incentivised savings accounts, such as
- Junior ISAs & Child Trust Funds
- Certain employee schemes
Take the Week 5 quiz/test at www.shareradio.co.uk - as you take each week of the course, your results will build up on your personal dashboard.
is broadcast by Share Radio and is based on the Open University Business School online course of the same name.
Your presenters are Glen Goodman and Annie Weston.