UK Pensions | Loans | UK Mortgages | Insurance |Credit Cards
 
All Your Latest
UK Personal Finance
BEST BUY TABLES


How we can help you

Who recommends us

___________

A TO Z All subjects

A | B | C | D | E | F | G | H
I | J | K | L | M | N | O | P
Q | R | S | T | U | V | W
X | Y | Z

___________

 

A

Accountants / Tax
Annuities
Asset Finance



B

BEST BUY TABLES
Banking
Bicycle Insurance
Bike (Motor) Insurance
Bridging
Business Information
Business Loans/ Finance
Buy to Let Property



C

Calculators - Mortgages
Calculators - UK Inflation
Calculators - Loans
Credit Cards
Credit Card Best Buys
Car Insurance
Caravan Insurance
Childrens Savings
Child Trust Fund
Conveyancing
Commercial Loans
Corporate Takeovers
Current Accounts



D

Debt Management
Divorce and Mortgages
Difficulties - Mortgages



E

Equity Release Mortgages
Endowments
Endowments Rescue



F


Finance - Commercial
Finance - Bridging

Find an Accountant
Find a lawyer
Family - Borrowing from



H

Health Insurance
Homes and Housing
Home Insurance
Horses Insurance
House buying - How to



I

IFAs
Inflation Calculator
Insurance
Insurance for loans
Investing
Investing Share Tips
ISAs



L

Lawyers - Find a
Legal - Housebuying
Life Insurance
Loans - Best Buy Table
Loan Insurance UK
Loan - Family and Friends
Loans - Personal
Loans - Commercial



M

Medical Insurance
Mortgages
Mutual Societies



P

Pensions
Pet Insurance
Private Health Insurance
Private Loans



R

Remortgaging



S

Savings
Self Employed - Mortgages
Self Employed - Pensions
Self Employed - Annuities
Small Business Advice
Stocks and Shares Tips UK
Solicitors - Find a
Stakeholder Pensions
Student Insurance
Student Loans
Student Money / Finances



T

Tax
Takeovers - Corporate
Tracker Funds
Travel Insurance
TIPS on Buying a Home
TIPS on Getting UK Mortgages
TIPS on Getting UK Pensions
TIPS on Investing



U

Unit Trusts



V

Venture capital



W

Wedding Insurance
Wills


___________



About us

Terms of Use / Legals

Data Protection

Feedback

Contact us

Help a Charity




Tracker Funds

The investment the pro's don't tell you about...

Tracker funds (also known as index tracker funds) are investment funds which work by simply tracking a set index. A typical index would be the FTSE 100 share index (that's the shares of the biggest 100 UK companies which you see mentioned at the end of the nightly TV news).

Tracker Funds are said to be one of the best ways to invest your money but you probably won't have heard this before - for a very simple reason. There are no fat fees to be made by the porsche driving city boys because there is no need for active fund management.

Normal investment funds require a fund manager, to decide where to invest your money. They need to earn about a million quid a year for the hassle of it all. (That'll be a million quid of your money, thanks).

The effect of the annual management charges on your investment fund has a huge impact on what you get back. The Financial Service Authority (FSA) - the City's Watchdog - published a research paper entitled "The Price of Retail Investing in the UK". This found that between 1987 and 1999, on average a consumer would have needed to pay �1.50 to ensure that �1 was invested in the market.

However, tracker funds simply go up or down in line with the performance of the agreed "benchmark" index (eg the FTSE 100 Share index or whatever is being tracked).

They cost a fraction of managed funds.

Fans of tracker funds claim they're not only cheaper but that they're also more successful than the funds that are managed by the over-paid fund managers.

As the Buddha of the small investor, Warren Buffet, said

"Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals."

Investing Guide Full Contents


UK Personal Finance Guides © 1999-2013 Moneysorter Ltd. All rights reserved. | Author: By Ed Parry