CAMBRIDGE CATALYST Issue 02

INVESTMENT

do not want to receive dividend income straight away, most SIPP providers offer a dividend reinvestment service, which reinvests this income into more shares of the company paying them. It is worth remembering that automatic enrolment is now compulsory, meaning all employees are paying into a workplace pension unless they opt out. Check what your workplace pension is invested in to ensure diversification across your investments. There are different tax treatments and access rules for different financial products that hold shares, so it’s advisable to do your due diligence or get financial/tax advice before making an investment. companies), the FTSE 100, secures more than 70% of its revenues from overseas, showing the international nature of the UK stock market. This will also be reflected in Cambridge- based listed companies buying and selling nationally or internationally, and influenced by sectoral and other forces beyond the region’s boundaries, which could impact performance. Of the 17 Cambridgeshire-based listed Investment considerations The UK’s index of leading shares (largest

activities, for example, to bring young people from a much wider region into STEM subjects and host events from which everyone can learn,” she says. How to buy your share To buy shares in listed companies, investors need to have either a stocks and shares ISA or a personal pension, such as a SIPP (Self Invested Personal Pension). Companies including Hargreaves Lansdown, AJ Bell, James Hay and Bestinvest offer such products for varying fees. Once you have a financial product that can ‘hold’ shares (also known as listed equity), you can either transfer an existing pension into it or fund it with cash from another source. Once funds are in place, you will then be able to add your chosen shares into that financial product (ISA, SIPP etc). Shares can be searched for by company name (such as AstraZeneca) or stock market ticker (eg AZN). To make financial gains on shares, investors can benefit from capital appreciation – the price of the shares rising above the price they were bought for – and dividends, if the company they are invested in pays out regular cash to shareholders. If, however, you

Irwin Mitchell’s UK Powerhouse report, which analyses the economic performance of 44 cities, showed Cambridge’s year-on- year growth in the final quarter of 2018 was 2.7% "

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