Making a Million Using Stocks and Shares ISAs - Part 5 of 26
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Investment Fund, Wealth Building on 11th February, 2010.
Tags: investment fund, isa, isa investing, liquid millionaire, million, stocks and shares.
Over the last few months, I’ve been writing an ISA Trend Investing Guide that shows you how you could make a million using ISAs.
Over the next few weeks/months, I’ll be giving you an exclusive sneak preview before the main newspapers get their hands on it because I suspect that some time in the future, you’ll be seeing a copy inside your favourite weekend broadsheet.
In my four previous blogs, I introduced how ISAs are one of the UK’s best-kept secrets with content from the guide’s introduction. In my previous blog I explained who can buy an ISA as well as where to get an ISA.
I also stated that from this week, I would start to share with you how investment funds can make you “liquid” rich.
Let’s begin.
To help you become liquid rich use an investment fund
To invest in a Stocks and Shares ISA, you have to pick an investment.
Remember that an ISA is not an investment, but is the name of a wrapper that goes around an investment sheltering it from the Inland Revenue.
Once again, think about a sweet in a wrapper. The investment is the sweet and the ISA is the wrapper.
Your job is to find an Alex Ferguson of the fund world
In case you are unsure, an investment fund is a pooled investment vehicle that allows investors like you and me to invest in the stock market.
They are controlled and managed by a professional investor who is called a fund manager. These fund managers buy stocks (companies) that they believe are going to rise in value. If they choose well, the fund’s value will do well and all the people invested in the fund will be rewarded with an increase in their investment portfolio.
Investment funds are the investment vehicles that have the power to grow your account at greater returns than you’d get from investing in a cash ISA.
But they can also fall in value too.
Investment fund managers are like football managers.
That means to increase the probability of you picking a good fund that is likely to perform well in the future, you first of all have to find a fund that is currently being managed by a fund manager with an excellent track record.
To help you become liquid rich, make it your goal to beat the market
Your chief aim is to beat the market. And it’s possible to do that using investment funds.
In Friday’s blog I’ll be explaining what do we mean when we say ‘Beating the Market’?
Find Out More
In the mean time if you would like to find out more about how you can make a million pounds through using an ISA, please click here for a FREE sneak preview of my book, Liquid Millionaire.
Happy reading!
Your friend,
Stephen Sutherland
The UK’s Leading Authority in ISA Trend Investing and Author of Liquid Millionaire
Please Note: As always, let me remind you that I am not a financial adviser and therefore not authorised to give advice on what investments to buy or sell.
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