As a shareholder, while you may already know of the potential advantages of investing in equities, you may also be aware of some of the disadvantages of holding individual shares. A portfolio that is made up of just a few different individual shares leaves you with all your eggs in one basket, and your investment exposed to a greater degree of risk than a more diversified portfolio containing several different asset classes. It can also be expensive to buy and sell individual shares and they do not provide you with the extensive research capabilities that you would benefit from when investing with a specialist investment manager such M&G.
The M&G Share Exchange Scheme offers you an easy way to turn your individual shares or gilts into an investment in an M&G fund, so you can enjoy all the advantages of a ‘pooled’ investment and the peace of mind of having an expert fund manager looking after it for you.
As you may know, the beauty of a pooled fund is that it can spread the risk to your investment across different companies or asset classes, over many different sectors, regions and countries. So, even if one of the holdings in the fund underperforms, the others should cushion the blow.
Prices may fluctuate and you may not get back your original investment.