Which ISA Investment and Which Strategy to Use to Grow Your Wealth?
By Stephen Sutherland, author of Liquid Millionaire.Posted in the Category of ISAS, Investing, Stock Market, Investment Fund, Wealth Building on 21st October, 2009.
Tags: isa, isa investment, isa trend investing, tax-free wealth, which isa.
Which ISA Investment is the Best for You?
Today I want to talk about which ISA investment is the best for you.
In recent blogs I have focused on the first step in ISA Trend Investing – Determine Market Direction, now it’s time to move on to step two – Find a Quality Fund.
Right now investors are facing the opportunity of a lifetime. As I have said many times on this blog, I firmly believe a new bull market is just beginning and, as with any bull market, the big money is always made in the first two years. But unless you know exactly where to invest you could miss this unique opportunity for tax-free wealth.
Make Sure You Can See the Wood for the Trees
This same opportunity is right under everybody’s noses but because they have not been informed about it, they have no idea it exists.
There is an English Proverb that sums this up beautifully: “Some men go through a forest and see no firewood.”
ISA Trend Investing Step 2 - Find a Quality Fund
Let’s now move onto talking about funds.
What do you know about investment funds?
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 Fund Managers Are Like Football Managers
Investment funds are the investment vehicles that have the power to grow your account at 20% per year if you choose well. Investment fund managers are like football managers. If you can find a fund manager with an outstanding track record you’ve cracked it. The challenge is that in the UK there are over one thousand ISA funds to choose from and so unless you know what you are doing and how to check various performance gauges, it is very easy to pick a dud fund.
To explain further we shall use British football manager, Sir Alex Ferguson as an example.
Let me ask you a question.
Sir Alex Ferguson is renowned for having a great track record. What are the chances that he will do well next season?
The answer is, he will probably do well. Of course, there is no guarantee, but the probability of him performing well next season is pretty high.
That same principle applies to fund managers. In other words, when fund managers have great track records, they are also likely to keep doing well in the future, but as I’ve said, the challenge investors face is finding them.
In my next blog I will be showing you how to use Stocks and Shares ISAs in order to benefit from the higher returns that these funds yield.
Until then, if you would like to find out more about how ISA Trend Investing could help you to make tax-free millions from an up and coming stock market boom then 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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