Equities
| Both cash ISAs and National Savings products are certainly much less risky than buying equities, that is to say investing in the shares of companies listed on a stock exchange. However, equities do offer an upside possibility that National Savings products do not. You have the possibility of gaining not only a dividend - a proportion of the company's after tax profits distributed to shareholders - but also a capital appreciation. If the price of the shares goes up after you buy them then you have made, on paper at least, a capital gain. The bad news though is that the value of shares can go down as well as up, which means you risk losing your investment if the price of the shares falls. For investment clients we offer a wealth management programme which consists of a Quarterly Fund Review. In essence this is the most critical element of the advice process, to ensure our clients' portfolio funds remain suitable and ahead of the game.
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