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Key things you need to know about investing in funds

With thousands of funds available, learn how to sort the wheat from the chaff
Key things you need to know about investing in funds

A basket of different investments, funds are a great route to investing. But it’s important to understand what types are available when picking the best options for you. 

There are over 10,000 funds available for private investors in the UK according to Morningstar data. Frankly, it’s a ludicrous amount.   

 

A good starting point is understanding the difference between active and passive. For many people starting out, passive can be the best option as costs tend to be significantly lower. 

You should also understand the difference between exchange traded funds, investment trusts and unlisted funds before you get going. 

Download the fourth guide in our investing explained series, written by Investors’ Chronicle’s funds editor Dave Baxter, to learn more about investing in funds. 

This guide includes:

  • What is a fund
  • Active vs passive
  • Types of passive
  • Types of active
  • Finding a good fund
  • Building a portfolio

Or listen to our podcast, where the IC's Mary McDougall chats with Dave and Henry Cobbe, head of research at Elston Consulting about the nuances of picking between investment funds. 

They discuss all the major fund structures, investing in different geographies, the difference between active and passive and where the difference between the two can blur. 

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This article is sponsored by IG.