Investing Your Money
UK interest rates have tumbled, from 5% in September 2008 to just 0.5% by March 2009 and remains at that level. This might spell good news for borrowers, but not so for savers who have witnessed plummeting rates on their bank and building society accounts. According to a survey conducted by Moneyfacts early in January, as many as 38% of savings accounts already paid interest of 1% or less. Many savers rely on interest payments to supplement their income, and are now looking for alternative strategies that will generate income.
A cash ISA is one alternative. Rates on cash ISA's are not necessarily much higher than rates on normal deposit accounts, but ISA's do at least pay this interest tax-free. Meanwhile, in an environment where UK interest rates have reached unprecedented lows, bonds might offer an opportunity to generate a stable income stream with less volatility than the equity market - and, having fallen heavily last year, bonds are considered well priced.
As share prices have fallen, dividend yields have soared, increasing the attractions of equity income funds. Firms that pay high dividends tend to be established companies with stable businesses and strong balance sheets. Admittedly, in the current climate, some companies are cutting or canceling these dividends as they attempt to protect their profits from the economic downturn. Nevertheless, an equity income strategy allows investors to benefit from a relatively high yield whilst also giving their capital the opportunity to grow.
Looking for Income, Growth? We can Help...
Whether you are looking to invest to produce income or growth we can help. We can offer a wide range of investment opportunities from the whole market, from low risk cash ISA's and income investment plans to more adventurous long term plans for high yield returns and capital growth.
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