A Guide to Investments



In our experience, many people delay getting investment advice because they are not sure what to expect from the adviser or the process. However, most are relieved when they meet our friendly, straight-talking advisers! Financial jargon can also prevent people from getting to grips with wealth management, so we have put together this handy guide to help you get ahead with financial planning.


At D&G Independent, we specialise in helping you achieve your financial goals so you can enjoy a comfortable life. When it comes to investing money, there are a variety of options available to you but the terms used by our industry can make the process sound complex and confusing. Here, we provide a definition of the types of funds into which you can invest terms used regularly by industry professionals.



Stocks is the term used to represent the partial ownership in a company that trades on the stock market. Stocks can be converted into cash relatively quickly or you could receive capital gains should the share price increase.



An investment portfolio could be made up of a variety of bonds, such as corporate bonds or investment bonds. Essentially, you lend the amount you wish to invest to bond issuers, typically companies or governments. In most instances throughout the lifetime of the bond, you will receive periodic interest payments. Once the bond matures, you will receive the original amount invested back.


Exchange-Traded Funds

An exchange-traded fund is also known as an ETF. This investment fund is traded on the stock exchange and its value changes throughout the day. ETFs can be easily bought and sold.


Mutual Funds

A mutual fund combines money from multiple investors who each receive a share of the fund value. The performance of the funds is monitored by professional fund managers. It trades on the stock exchange; its value does not fluctuate during the day but is determined at the end of each trading day.


Alternative Funds

An investment portfolio can incorporate a number of other arrangements, such as property, trusts and private equity funds. Each one of these options can be discussed with your independent financial adviser to ensure they meet your long-term financial objectives.

As well as understanding the types of funds and arrangements into which you can invest your money, it is also worth knowing some key terms so you can appreciate how your investment portfolio is made up.



Diversification represent the incorporation of a variety of different funds into your portfolio. This is done in an effort to manage risk.



Financial risk is concerned with market volatility; essentially the rate at which the value of your investment can change. The value of your investment can go up as well as down and you may not get the original amount invested. Some funds are riskier than others and the expected return will reflect this; low risk funds do not yield as great a return as those presenting a greater risk. Your attitude to risk will determine the right funds for you.



Market values fluctuate. When they change regularly and unexpectedly, they are known to be volatile. A volatile market poses a greater risk to investors.



Liquidity refers to the speed at which an investment can be converted into cash. If you have a specific timeframe in mind over which you wish to invest, it is important to consider the liquidity of your investment.


Allocation of Funds

An investment portfolio is typically made up of a number of funds, be in stocks, shares or bonds, for example. Your financial adviser can work with you to determine how you want your money to be allocated based on the type of funds, their associated risk and potential return.


If you would like independent, impartial advice about creating a bespoke investment strategy, please call us on 01352 774 272. Your initial consultation is free with no obligation.




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