AN AFFORDABLE WAY TO MAKE YOUR MONEY GROW IN INVESTMENT FUNDS

HOW DO I CHOOSE AN APPROPRIATE FUND?

Before making any investments it is important to establish what you are saving for, how long you have to build up your savings, when you are likely to cash in your investment and how much *risk* you are prepared to take with your money. The answers to these questions will determine the sort of fund which is suitable for you.

IMA’s “Introducing Investment” guide will help you to think about your financial position and decide whether investing is right for you. If at any time you are unsure about your attitude to risk or whether an investment is right for you, you should contact an authorised *financial adviser* for assistance. See “How do I find out more?” for further information.

HOW DO I BUY AN INVESTMENT FUND?

Investment fund savings plans can be bought through an authorised financial adviser, bank or building society, direct from the fund management company or via a *fund supermarket*.

WHAT HAPPENS ONCE I HAVE STARTED MY MONTHLY SAVINGS PLAN?

Once the *fund manager* has received the instruction to set up your monthly savings plan, the manager will take the amount you have instructed directly from your bank account on a monthly basis.  Your manager will also send you statements at regular intervals. These will detail the number and price of the units/shares your monthly contributions have bought, together with the current value of the units/shares you hold. You will also receive either a copy of the report and accounts or a short report produced for your fund, twice a year.  In order to work out the value of your holding, simply multiply the number of units/shares you hold by the unit/share price. For example, if you hold 2,000 units/shares in a fund and the current value is 60p the calculation would be:

2,000 X £0.60 = £1,200

It is important to regularly check on your investment in order to make sure you are happy with the progress it is making. If at any time you are unhappy you should contact the relevant fund management company or an authorised financial adviser for assistance.