Financial Wealth Ideas

If the Americans the most popular means their money is buying shares of mutual funds, or public investment companies, and, moreover, extended private investment company, the British were the first analogues of the so-called unit trusts (or unit trusts), and secondly - Investment Trusts . Unit Trust (unit trust) Total assets of unit trusts now account for 141 billion pounds, while the total net proceeds from the sale of shares reached a record sum of 1.4 billion pounds. Name "Unit Trust" comes from the English "units" which means "stake" or "a single contribution," and of "Trust" - "trust". In other words, the meaning lies in the fact that the investor sends in their cash asset management fees. By investing in unit trust, he receives a replacement share certificate for entering. Share price is determined by dividing the total value of securities in a portfolio of unit trust, the number of issued shares. With increasing demand managers decide to issue new units. They can also be redeemed by investors, and to cancel, this English unit trust investment company like the open type (mutual fund) in the United States. The difference between these institutions linked to the subtleties of legal rights. In Britain, it is possible to transfer the ownership of the money to another person, ie, after the investor's money into unit trust, the trustee becomes a so-called fiduciary (trust). In the United States, this principle does not work, so mutual funds are in the form of joint stock companies. Through the purchase of shares the investor retains the right to property is made of money. Since the ownership of unit trusts creates some difficulties with the proliferation of units outside the UK and some other reasons, in July 1996, Parliament approved regulations that allow you to create an open investment company with variable capital, and in early 1997, the Office of Securities and Investment (UTSBI) approved and issued a final detailed regulations in this area. But more of that below. With regard to unit trusts, these agencies are exempt from paying taxes on profits, but are required to distribute all the income after the remuneration of the administrator. Payment of income participants performed less income tax (at basic rate). Management unit trust being trustees and managers. The task of Trustees - to protect the interests of investors. Because of the traditions of Trustees, which are usually large banks or insurance companies, small. Trustee serves as trustee of securities, managed by the manager. There is a great variety of unit trusts, focusing on different investors. Some invest only in shares of British companies, or shares of fast-growing companies in the United States, Europe, Australia, Japan, the Far East, or in government securities, etc., while others engaged in buying and selling only the futures and options, investing in real estate , warrants, short-term financial instruments. Typically, the sale of units produced directly control unit trusts, which declared the price of buying and selling (the gap is 5-7%). Remuneration of approximately 0.75% of the value of the assets, but sometimes reaches up to 2%.