A SAFE WAY TO GET RICH. (M & G)

Member Name: Aang

Product:	M & G
Date:	08/10/00 (331 review reads)
Rating:

Advantages: Excellent growth & low risk

Disadvantages: None

If you had bought Marks and Spencer shares ten years ago, they would now be worth less than you paid for them. If you look at the companies in the FTSE 100 for 1984, you will see that only 39 of those companies are still there in today's FTSE 100. And what's happening to BT and Kingfisher today? They may recover. They may not. Volatility can be so high when you buy individual shares. So what is the answer?

Maybe you are good at spotting winners? Microsoft would have been a good bet, in the past. £1,000 invested in Sage ten years ago would now be worth £130,000. But what happens if you choose losers like J Sainsbury or Toorisky.com?
I prefer not to take too many risks. I prefer to have some money in unit trusts.

Unit trusts are generally much less risky than individual shares. But, you have to shop around and choose the best trusts. (Many trusts are duds.)

A low cost index-tracking fund is one answer.

Alternatively, have a look at two of M & G's unit trusts :

1) M&G Global Technology has grown 127% over the last year (to 1 October 2000) and is not regarded as particularly risky. Volatility has not been too great. I regard 127% as pretty good.

2) M&G European Smaller Companies is up 115% over the last year. It is also a relatively low risk investment, with low volatility.

M&G has improved a lot in recent years and has some top class trusts.

Alternatives to M&G could be:

Solus UK Special Situations, which is up 155% over one year, and which is relatively low risk.

Abbey US Emerging Companies, up 138% over one year, and relatively low risk.

Framlington Health Fund, up 251% over one year, relatively low risk.

Summary: