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Monthly investment plan |
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Monthly investment planA plan in which a certain amount is invested each month in order to benefit from dollar cost averaging.Monthly investment plan Similar MatchesPortfolio investmentPortfolio investmentThe acquisition of portfolio capital. Usually refers to such transactions across national borders and/or across currencies. Investment valueInvestment valueApplies mainly to dealer securities. Fixed income value of a convertible, the price at which the convert would have to sell as a straight debt instrument relative to the yield of other bonds of like maturity, or size, and quality; represents a presumed floor to the bond, assuming the continued creditworthiness of the issuer and the general level of interest rates. Bond value. See: conversion value. Green field investmentGreen field investmentFDI that involves construction of a new plant, rather then the purchase of an existing plant or firm. Contrasts with brown field investment. Guaranteed investment contract (GIC)Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment. Investment trustInvestment trustA company quoted on the London Stock Exchange which invests its shareholders' funds in the shares of other companies.Points to note about investment trusts are:They enable private investors with limited funds to get diversified share ownership and without incurring heavy dealing costs.They enable investors to get exposure to markets that they may not be able to reach themselves (e.g. to emerging countries). Different trusts also have differing objectives (e.g. growth or income).They enable investors who don't have the skill or inclination to invest directly in companies to get the advantage of professional fund management (although see point below 6)It is easy for investors to drip-feed money into investment trusts over time by using a monthly savings plans.Unlike unit trusts, investment trusts are closed end funds. That is, there is a fixed number of shares in circulation, and the price of those shares is determined like other quoted shares - by supply and demand. This means that IT shares often trade at a discount to their Net Asset value (i.e. the value of their underlying investments) and it also makes IT shares more volatile than unit trust prices.ITs are actively managed funds which try to produce total returns better than the market average. However once management charges are taken into account, they often fail to meet this target. Hence the move by many investors to passive funds - trackers and index funds - which have lower charges. Further SuggestionsReal Estate Investment Trust (REIT)open ended investment company Multilateral Investment Guarantee Agency (MIGA) Foreign portfolio investment Investment Company Act of 1940 Investment letter Reinvestment risk Investment Company with Variable Capital investment company Investment Risk Trade-related investment measure Independent investments investment club Investment Association of Investment Trust Companies Investment bank investment protected investment products Temporary investment investment bond Investment software Unamortized premiums on investments Investment manager Target investment mix Foreign investment risk matrix (FIRM) |
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