As a private investor your main enemies are the risk of capital loss through market volatility and the erosion of your capital as a result of inflation.
Your investment reward, which should be commensurate with the risk, is the 'total return'. Think of this as the percentage increase on your original investment. It is derived in two different ways. Firstly, from investment income (dividends and interest) and secondly from capital growth (a rise in the price of the underlying shares in the funds you own).
You may help to manage your equity risk by investing in a range of funds not only in differentsectors (e.g. technology, energy etc) but also in different parts of the world (e.g. Asia, South America etc).
Moneyspider.com is an online service that not only allows you to monitor and rate your stocks and shares ISAs, Unit Trusts and OEIC investments, on a daily basis, 24/7, it also allows you to compare your funds with every one of the best performing funds in its sector and all other sectors, using our unique rating system.
Do check the Moneyspider’s top A rated funds, so you can see which funds in which sectors and which parts of the world have performed best.
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