Equity Investing - UK - September 2016
“Low savings rates and new technology should make investing in equities an attractive proposition for those who have become disillusioned with the cash savings market. However, ownership across the adult population remains low and a risk-averse attitude continues to hamper the uptake of investment products, with recent market volatility off-putting for those who lack investment experience. Helping customers to navigate these concerns through education and access to advice will be crucial in expanding the pool of investors.”
– Scott McDonald, Financial Services Analyst
This report discusses the following key topics:
- Generation X – A lost generation of investors
- Ethical and green funds provide opportunity to engage with young investors
This Report examines the investment market, with a focus on equity investments. The Report looks at the different investment options available to consumers when investing in equities, these include stocks and shares, stocks and shares ISAs, unit trust funds, investment trust funds and open-ended investment companies.
For the purposes of this Report, Mintel has used the following definitions:
Exchange-traded Funds (ETFs) are investment products that track an index (e.g. FTSE 100) by investing in the same stocks and shares that make up that index. ETFs are passively managed, meaning that the fees for these types of investment are typically lower than other actively managed investments (such as Unit Trust Funds and OEICs). Exchange-traded funds are listed on stock exchanges and can bought in the same way as individual shares or an investment trust fund.
Individual Company Shares are issued by businesses to raise equity or capital, these shares are offered to investors to purchase. Once an investor purchases shares they become a part owner of that business. The prices of shares can go up and down, meaning that the value of an investment may go up or down depending on how well the business is performing or other market conditions. When a consumer wishes to sell their stake in a business this activity is referred to as Share dealing.
Investment Bonds are life insurance policies where a lump sum is invested in an investment fund selected by a consumer or an adviser. These policies are typically whole of life policies and the returns a consumer receives when these policies are cashed in will depend on the performance of the fund, much like other investment products.
An Investment Trust Fund is another form of collective investment that allows investors to pool their money to purchase a variety of assets. Investment trusts are set up as companies and are listed on the London Stock Exchange, this means thatan investment trust has to publish an annual report and audited statements. They also have a board of directors that are responsible for safeguarding an investor’s interest.
Investment trust funds are closed-ended investments, meaning that there are a limited number of shares that can be issued by the company, when an investor invests in this type of fund they become a shareholder of this company.
A Real Estate Investment Trust is a company or a group that owns and manages property on behalf of shareholders. This type of investment allows consumers to invest in property without having to purchase a property themselves. These types of investments do not purchase or hold equities, so will not be discussed in this Report, but they are referenced in The Consumer section of the Report.
Stocks and Shares ISAs are a tax-efficient method of investing in a variety of different investments. It is possible to invest in individual stocks and shares, unit trusts, open-ended investment companies, investment trusts and government and corporate bonds. Unlike a cash ISA there is some risk carried with a stocks and shares ISA as a consumer’s money is invested and therefore is subject to market fluctuations.
Unit Trust Funds and Open-ended Investment Companies (OEICs) are collective investment products that allow multiple investors to pool their money to purchase a variety of different assets. Fund managers purchase a variety of shares, bonds, property and cash assets, and other investments to create a diverse portfolio for investors.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
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