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A Guide to Investment Companies

An investment company is a company with some specific share investments that you can participate in. The benefit of using such a business is that you will be using the expertise of professionals who are in the market every other day and rely on getting the best results for their company.

Companies that carry out specialized investing on your behalf are known as Listed Investment Companies (LIC). The manager of these companies may be internal or part of an organization that offers expertise to several such companies.  The internal managers are the best as they perform a more hands-on approach to management.

Investors in a Listed Investment Company invest in the share market and do so by selling and buying shares in the company to each other. They trade as all shares are traded.  Another way that you can invest in these companies is by buying units in the company.  Buying units give you the exposure to the company's performance. Unit trusts are offered by the company and investors may choose to purchase units in the trust provided.  There may be tax benefits that must be looked into before you decide to buy the units or the shares.  

Why Invest in an LIC?

Investing in an LIC can be considered for the following reasons
A Diversified Portfolio through a Single Management
Investors get access to and exposure to a wide range of group shares without having to9 pay entry and exit fees on all the shares.  The only fees that apply to the shares are the fees for buying into the LIC and selling out of the LIC.  But the overall fees for internally managed investments can be a significant factor in your choice of which LIC to invest with. Read more great facts onHyland Investments, click here.

Returns from Both Capital Appreciation and Income
As the company becomes more valuable in its capital base and its assets appreciate, its value goes up. With the value of the shares, they have bought in their investment strategy go up; your investment goes up as well.  

Concentrated Exposure to a Particular Investment Sector
As a particular sector outperforms others, the investor finds another LIC concentrating its efforts on the better-performing sectors and be able to secure higher returns. For more useful reference regardingthis investment company, have a peek here.

A Tax-Managed Investment with Relative Consistency in Returns
Associated tax requirements within the investment holding time are handled and paid by the LIC. In this case, there is a consistent return to the investor, as the tax is both paid and claimed through the entire investment period by the LIC.  Please  view this site for further details. 
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