Investments are made in the form of a lump sum or regular savings. With direct equities excluded, the main principle behind lump sum investments is that they generate capital growth or provide income or a mix of both. In the event of regular savings the general principle is to generate capital growth.
The main asset classes are as follows:
- Cash
- Bonds
- Property
- Equities
- Commodities
Investments are classified between capital guaranteed investments or unit linked investments whereby the value of the investment may rise and fall.
Low Risk Investments
Low risk investments are typically Deposit Accounts, Capital With Profits Bonds (provided the term of the policy is adhered to), and Government Gilts.
Higher Risk Investments
Other investments with a higher exposure to risk would typically be Unit Linked Funds, Tracker Bonds and Aggressively Managed Funds.
In more recent times, energy, water and emerging markets funds have become available to the discerning investor.
It is important that the charges applying to a fund are known and also the asset mix. This will ensure that reinvesting in under-performing funds will not occur.
Sample Investment Portofolio
The following table illustrates an example Investment Portofolio Valuation:
| Details: | Investment: | Date of Purchase: | Cost: | Current Value: | Total Gain/Loss: |
|---|---|---|---|---|---|
| Unit Funds | |||||
| Irish Life Property Investment Fund II |
Single Premium | 05.01.99 | €12,697 | €15,668 | 23.40% |
| Canada Life Dividend Income Bond |
Single Premium | 06.08.03 | €22,000 | €30,962 | 40.74% |
| Eagle Star 5*5 & Dividend Growth |
Single Premium | 23.01.02 | €14,100 | €24,356 | 72.74% |
| Savings | |||||
| Anglo Irish Bank | 30 Day Notice Gross int @ 4.75% | 16.05.04 | €44,421 | €48,241 | 8.60% |
| Regular Saver @ 7% pa | 10.07.06 | €2,400 | €2,400 | 0.00% | |
| Equities | |||||
| CRH | 291 Shares | 01.06.00 | €3,749 | €10,659 | 184.32% |
| 822 Shares | 01.06.00 | €10,252 | €12,494 | 21.87% | |
| Pensions | |||||
| Eagle Star Dynamic |
€500 Monthly | 01.12.99 | €31,194 | €46,848 | 50.18% |
| Hibernian Buy Out Bond High Yield Fund |
Single Premium | 16.12.99 | €75,695 | €102,267 | 35.10% |
| Total Portfolio | €216,509 | €293,895 | 35.74% | ||