Discussion
Probably a basic question for most of you but couldn't seem to find an answer anywhere.
I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
From what I gather (no expert at all), each different fund within a company eg invesco, tends to specialise in different markets, for example a fund that I invest in specialises in the Russian economy, thats the area my fund manager specialises in. These specialist areas are anything from foreign economies to startup businesses/equities etc.
When you invest in them, I believe your money goes into a pot with everyone else's investment and the fund manager does his work with the one big pot of cash, investing in his specialist areas. Some are more volatile than others, and the fund manager makes no secret of it. There's enough choice out there to find a fund that suits your needs, be it secure or adventurous, getting an income from it etc.
There's far more qualified people on here to answer, but I think thats the general gist of it.
Hope this helps..
Edited to add; what I've been told is its not the fund/company you want to be looking at, its the individual fund manager of the given funds. Theres countless websites which will show you individual performance figures for each fund manager. He'the man with direct control of your cash, so its the manager you want to pick wisely.
When you invest in them, I believe your money goes into a pot with everyone else's investment and the fund manager does his work with the one big pot of cash, investing in his specialist areas. Some are more volatile than others, and the fund manager makes no secret of it. There's enough choice out there to find a fund that suits your needs, be it secure or adventurous, getting an income from it etc.
There's far more qualified people on here to answer, but I think thats the general gist of it.
Hope this helps..
Edited to add; what I've been told is its not the fund/company you want to be looking at, its the individual fund manager of the given funds. Theres countless websites which will show you individual performance figures for each fund manager. He'the man with direct control of your cash, so its the manager you want to pick wisely.
Edited by gandhi on Thursday 15th March 20:49
Seany88 said:
Probably a basic question for most of you but couldn't seem to find an answer anywhere.
I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
So you gave someone else your money, without understanding what they are going to do with it?!!! I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
fund is divided into a thousnads of units, so you buy X units in the fund - i.e you are getting your "share" of the fund from day 1. If the fund is worth £50 million the manager now has to find something to do with your £1000 contribution.
and to answer your q.....yes, when you bought the fund was down (one assumes) so your units were all down as well (ie fund worth £1000 with 1000 units = £1 each unit - fund falls to £900 = each unit = 90p)
and to answer your q.....yes, when you bought the fund was down (one assumes) so your units were all down as well (ie fund worth £1000 with 1000 units = £1 each unit - fund falls to £900 = each unit = 90p)
Edited by Tiggsy on Thursday 15th March 22:05
UpTheIron said:
Seany88 said:
Probably a basic question for most of you but couldn't seem to find an answer anywhere.
I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
So you gave someone else your money, without understanding what they are going to do with it?!!! I recently invested in a fund through an online fund supermarket. I thought that i'd invest while the market has dipped, but thinking about it did it actually make any difference?
How does a fund work? Does my money just go into a 'pot' where the fund manager then uses to buy stocks as/when he wishes OR as soon as i give them my money it gets invested directly into whatever they are invested in?
Basically...yes! Well in fact no, i knew where they were investing etc just not whether it was advantageous to increase my investment when the fund dips.
Tiggsy, thanks i guess i gambled right. Well until this week happened...
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