How risky is investment trust fund actually?

Question

How risky is investment trust fund actually? There are people telling me that trust funds are gimmick. The finance company is the real winner and the customers are just contributors to it, and they normally lose a lot of money.

Answer 1

The performance of a trust fund depends on the competence and the integrity of its manager. There are some good fund managers who do well and some not so good who do poorly for their investors.

There is some risk involved in putting your money into a trust fund. And you should do research and find the best fund you can before putting any money into it. Also, it's a good idea to invest in more than one fund. This way if one of them doesn't work out well, then at least you will make some money in your other funds.

A common financial advice experts give is that even good equity funds can go up and down in price short term. But long term on average they go up. This means of course that you should invest money which you will not need to use for anything else for 3 to 5 years at least. Or else you may have to take out your money when the market is down, and you will loose some of your money as a result.

Answer 2

there are 2 varieties of money owed you may make investments it in - an interest price reductions trsut fund account and a percentage believe fund account - certain banks in reality do certain ones and some banks do both selections..for e.g hsbc dont do price reductions interest baby believe fund they in reality do percentage believe money wehich ability the interest on the moeny fluctuates by ability of the percentage value of the economic corporation...while the interest price reductions account ability although a lot you pay you get a particular interest price on it.. to be honest although in recent times with the credit crunch and espresso expenses of interest neither are to large because the expenses of interest are so poo that you wont earn a lot for putting it in the saving interest believe account and the interest you do earn on it now wont be worth some thing at the same time as they could get their hands on it in 18years (imagine what £10 replaced into worth 18 years in the past and what £10 is worth proper this second) get the picture yet then putting it in a stocks believe fund account ability its a guessing interest as to how a lot you'll earn on the money in the subsequent 18 years as you dont understand if the percentage value will bypass up so dont understand if youll make any money on it - altohugh you cant lose money if the account it both continues to be a similar or features interest if percentage value is going up go searching and spot what maximum appropriate matches you is the most appropriate area of do - at the same time as they saent me the voucher then despatched me an information leaflet on what banks do what believe fund money owed x

Answer 3

It depends what the fund invests in...