Why I invest in funds
Andrew Latto - founder Fund Hunter
Direct stock market investing is like a world class sport. You need to be on top of your game and able to see things that others don't. It is hard to go about it in a half hearted way and be successful. First level thinking doesn't work.
Funds allow me to access the best global companies. In the case of passive investment I only have to monitor that I am in a reasonable index. In the case of active investment I also need to monitor the manager. Fund investing helps to preserve capital: the most important investment factor.
Roger Lawson - Private investor
The reason I invest both directly in shares and in funds is because funds enable me to get coverage of those markets where I am not an expert. For example, in overseas companies.
Wheelie Dealer (Peter) - Blogger and investor
Collective Funds are great for getting exposure to certain ‘Big Themes’ and in particular I have such Investments in Technology and Health - both of which are clearly highly likely to do well over time as Tech becomes ever more pervasive within our lives and the pace of change just simply accelerates. Health is benefiting from various forces including innovative treatments, ageing populations and people around the globe getting increasingly wealthy.
You can pretty much find an Investment Trust for any Sector you fancy and there are some Funds run by outstanding Managers such as the Mark Slater Growth Fund where you can ‘piggy-back’ on one of the best Fund Managers around. Another key benefit is that Fund Investing is lower Risk than direct Investment in Individual Shares and it requires less of a ‘hands-on’ approach.
I like investing in funds because I am not from a financial or even a general business background, yet I enjoy managing my own money and feeling in control of what I'm doing. Funds are ideal because rather than handing my whole portfolio over to wealth manager, I get to pick what I buy and I benefit from the inherent diversification within each fund to minimise the risk of significant capital loss.