Investing Explained...

Personal Investing is simply the act of committing funds to an endeavour (a business, project, real estate, etc.), with the expectation of generating an income or profit. We understand that many of you may be experienced at this, but that many of you may not!

So allow us to talk you through some of the basics, as well as guiding you through a few definitions and frequently asked questions.

And if what you’d like to know isn’t here? Just download our beginners guide.

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Some Key Words & Phrases...

Asset-backed Investment

An investment whose financial security is in the form of underlying assets (e.g. land, loans or receivables)

Bond

A bond is a fixed income instrument that represents a loan made by an investor (you) to a borrower.

Broker

A person who buys and sells goods, assets or investments on behalf of others.

FCA

The ‘Financial Conduct Authority’: the financial regulatory body in the United Kingdom

Fixed Income

An income from an investment that is set at a particular figure, and does not vary.

Fund

A sum of money saved or made available for a particular purpose (e.g. to collectively purchase further stocks, bonds or other securities)

High Net Worth (individual)

An individual who had, during the financial year immediately preceding the date in question, an annual income to the value of £100,000 or more (or other equivalent measure)

ISA

Individual Savings Account. A scheme allowing individuals to hold cash, shares, and unit trusts free of tax on dividends, interest, and capital gains. In 1999 it replaced both personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs).

Legal Charge

The right that an organization or person that lends money has to take someone's property if that person/organisation does not pay back the money they borrowed, in ranking order.

Legal Title

Clear and enforceable title representing legal ownership of an asset or property.

Property (Commercial)

Buildings that are constructed or in the process of, to be used for business activity.

Property (Residential)

Buildings that are constructed or in the process of, for use as a dwelling.

Rental Assurance

A form of rent whereby the developer will contractually guarantee a gross or net rental return directly with the investor.

Return

The money made or lost on an investment.

Sophisticated (individual)

A category of individual who is able to certify certain criteria regarding professional status and investment experience.

Term

Length of time you are investing for (e.g. 5 years)

Common questions answered...

Common Investing Myths