A Guide To Life Insurance - An Online Guide To Life Insurance - Final Unit Price Ploicies .... ....

 

Find Out More


  


An Online Guide To Life Insurance - Final Unit Price Ploicies .......

This does not alter the fact that, as we have seen, such short-term deviations have a very considerable influence on the amount an investor receives at any point in time.

But it is important to recognise that these deviations are essentially unpredictable (especially when one is looking 10 or 20 years ahead). A consistently above-average performance of a fund (i.e.

the consistent growth in unit value at above, and fall in unit value at below, the average rate for that market) will mean that there is a higher probability that the investor cashing-in his units at any point in time will receive more than the investor in a less consistent fund. It does not mean that he will always do better.

To some extent, it can be argued, the above distinction is academic, since few funds show such consistency.

In practical terms, the important thing is to avoid funds that have done consistently worse than the average achieved by their competitors and those that are more risky. In the latter category come most "specialised" unit trusts, for example those investing overseas or in only one sector of the stock market. And there is also a good deal to be said for sticking to the larger unit-linked offices and unit trust groups which have the most experience in the business.


An Online Guide To Life Insurance - More on ....

Other readers found these pages interesting

 

Read On: read next:for An Online Guide To Life Insurance - Fund Charges Continued .


Skilful investment management may add 1-2% per annum to the performance of a fund (which would be good going by historical standards).
Much of any such advantage could, however, be eaten up by extra fund charges, and so the level of charges embodied in any unit-linked contract deserves careful study.
Unlike conventional offices, unit-linked offices display these charges for all to see, though their effect on the investment may be less easy to calculate than at first sight appears.read next:for An Online Guide To Life Insurance - Fund Charges Continued .


Disclaimer

Our insurance website is an independent marketing website which acts as an introducer to 'whole of market' companies who offer specialist Independent Financial Advice. Each company is authorised and regulated by the Financial Services Authority.

 

We are not authorised to give advice and we are not liable for any financial advice provided by, or obtained through a third party. The information published on this website is for information purposes only. This site has been approved for compliance purposes by a Firm of Independent Financial Advisors who are authorised and regulated by the Financial Services Authority (FSA). The Chartered Insurance Institute

Giving power to the reader...

  • To contact us, send an email and we will get back to you as soon as we are able. If you are looking for independent life insurance quotations then click here. If you are looking for any of the folliowing: Car insurance
    Bike insurance, Travel insurance, Home insurance, Life insurance, Landlord insurance, Pet insurance, Medical insurance, Dental insurance, Business insurance please click here

  • Have something to say?
    We publish financial articles on this site if they fulfil our requirments. more>>