An investment portfolio can help you achieve your long-term financial dreams. For example, build a nest egg for your retirement, repay your mortgage early, or pay university fees for your children.
While savings accounts offer easy access and the security of guaranteed capital, the returns can be small. Investing in the stock market can provide stronger returns over the long-term, but with a higher level of risk.
Potential for long-term returns
While cash is undoubtedly safer than shares, it’s unlikely to grow much, or find opportunities to grow, in the long run.
In the past, investors have found rewards over longer terms with investments that come with a level of capital risk. That means the risk that you might lose some or all of the amount you initially invested. Of course, these rewards are not guaranteed.
Volatility in the stock market, when stock prices change rapidly over a short period of time, isn’t necessarily a bad thing. In fact, volatility can sometimes offer investment managers the opportunity to buy attractive shares at a cheaper price and get better returns in the long term.
In order for your savings to grow in real terms over time, they need to earn a rate of return after tax that’s greater than the rate of inflation.
With today’s low interest rates, it can be difficult to find a savings account that can give you a return above the current inflation rate. So it’s worth considering investments which have the potential to outperform inflation.
Provide a regular income
If you’re retired or approaching retirement, you’ll probably be looking for something can give you a regular income to cover day-to-day living expenses.
There’s a range of investments, including equities, bonds and property, that can provide you with regular income that’s often higher than the rate of inflation.
Tailor to your changing needs
You or an Investment Manager can design your investment portfolio to achieve different goals as you go through life, e.g. you may prefer less risky options as you get older. With careful planning you can tailor your portfolio to reflect your changing goals and priorities.
If you plan on investing over a long time period, you may want to invest in funds that have growth potential, risky sectors such as emerging markets, or private equity where your savings can ride out short term market changes. If you’re approaching retirement, you may want to invest in more income-focused options.
CT has a wide range of investment trusts, so you can create the right portfolio for your financial goals.
Invest to fit your financial circumstances
As your financial circumstances change over time, you can change how you invest to suit your needs. You can invest lump sums as and when you can, or smaller regular amounts in a monthly investment plan.
If you have the money available, you can start investing straight away. The sooner you invest, the longer your investment has to grow. Alternatively, investing a regular amount each month can help iron out fluctuations in the stockmarket, particularly in a volatile market.
Our investment options let you top-up your investments whenever you like. You can stop, start or change your monthly investments at any time. Also, you can switch between any of our trusts whenever you want. Just write to us and we’ll do the rest.
This section of the website is directed at persons who are located in the UK. Please read our full terms and conditions and the relevant Key Information Documents (“KID”) before proceeding with any investment product referred to on this website. Nothing on this website is, or is intended to be, advice to buy or sell any investments. If you are at all unsure whether an investment product will meet your individual needs, please seek advice.