Some banks also allow you to download your statements into a personal finance package such as Microsoft Money or a spreadsheet such as Microsoft Excel. You acquire this stake by buying the shares of the investment trust which is itself a company quoted on the stockmarket. Pooled funds, like investment trusts and unit trusts, are generally a good choice for investors who do not have enough capital to build up their own broad base of investments. However, investment trusts are more risky than unit trusts because their share price can rise and fall in a way that does not necessarily reflect the value of the underlying investments and also investment trusts can borrow money to invest which exaggerates both gains and losses made by the trust. There is a wide choice of investment trust shares offering income, capital gain or a combination of both.
Most investment trusts are eligible for investment through a personal equity plan.
To invest, contact the trust managers direct or via a financial adviser. Individuals can invest a total of 5,000 per year, of which 1,000 may go into life insurance and 1,000 into cash deposits. The remainder of the money will be invested into shares, unit trusts or investment trusts. Certain financial institutions such as pension funds are not allowed to invest in any company that falls below investment grade. A gold coin introduced by South Africa in the 1970s to encourage investment in gold.