12 Places to stash your cash
w&h finance columnist Niki Chesworth asks a panel of experts for their top tips on where to put your money for both the brave and the cautious
By Niki Chesworth
Woman & Home Magazine
(Alan Steel is quoted at Numbers 5 and 12 below)
5 Buy a bargain
Buy cheap - that's the best time to invest. But which funds, companies and sectors are bargains and which are cheap for a reason?
The solution is a fund - or unit trust or oeic (open-ended investment company) - that seeks out great value.
Pros: It's better to buy shares when the FTSE100 index is around 5,500 not 7,000.
Cons: There are no guarantees
Expert's view: Alan Steel of Alan Steel Asset Management says: "If you're uncertain, opt for something such as the Troy Trojan Fund, designed to protect your money with a fund manager who tends to buy things when they are cheap."
12 Go for dividends
The bulk of investment returns (around 80%) comes from using the income shareholders earn through dividend payments to buy more shares.
Pros: Dividends tend to rise over time and are tax free in an ISA.
Cons: Your capital can still be at risk.
Expert's view: Alan Steel says: "If I could own only one fund, it would be the M&G global Dividend Fund because it only invests in companies with at least 25 years of increasing dividends."
Quotes courtesy of Woman & Home Magazine