What are the best investment companies in the UK?
Deciding on where to invest your money is a difficult choice, so choosing a good investment company is paramount. Look at their background, specialities and previous performance; you want to match that with what you’re hoping to achieve with your investment.
If you’re thinking of investing in film, then Films4U has a combined experience of 100 years in the film industry and we guarantee distribution of every single film. If you’re looking for more general investment companies, we’ve compiled a list of UK-based companies here.
This company uses the close-ended structure to invest in private companies as well as public listed ones. They have a long-term investment time frame and remain one of the leading high-risk options for equity investors. Their net assets are close to £7billion.
1-year return: 45.5%
3-year return: 86%
Their main objective is to maximise shareholder total returns by investing in smaller companies in the UK. The company’s total assets are 710.33 million and their asset class is equities.
Sector: UK smaller companies
1-year return: 48.1%
3-year return: 66.7%
This company has a fund size of £1.81 billion and is gold-star recommended. On their website, it states that ‘The company aims to achieve capital and growth and to provide shareholders with a total return above that of the FTSE All-Share Index.’
Sector: UK Equity income
1-year return: 39.6%
3-year return: 53.1%
This trust is a stable and popular option for investors, with shares in the trust having yields of 4.3%, paying a quarterly dividend. The portfolio of this company is also well-diversified, with over 100 different holdings. A solid choice for investing.
Sector: Equity income
1-year return: 32.9%
3-year return: 103.9%
This is a closed-ended investment company with a fund size of £486.8 million. Like Henderson, it focuses on small companies and mid-cap companies traded on the LSE. Its yield is 1.8%.
Sector: UK Smaller companies
1-year return: 35.2%
3-year return: 96.9%
What is an investment company?
As suggested by the name, investment companies exist to invest. Otherwise known as investment trusts, their income flows from buying and selling shares, property, and other assets. These companies pool the resources of several investors to reinvest it in marketable securities.
In layman’s terms, marketable securities are assets that can be liquidated to cash quickly and tend to mature in a year or less. After this, investors then collectively share in the profits and losses, obtaining more or less money depending on the investor’s interest in the investment company.
The securities that are owned by a mutual fund are its portfolio. Every share that an investor buys represents part ownership of the ‘so-called’ portfolio. The higher increase in the securities of the portfolio the higher the value of the shares the investors have of that particular portfolio.
Types of investment companies
The three distinct types of companies are mutual funds, UITs, and closed-end funds:
A mutual fund can be described as a company that uses the combined money of investors to invest in stocks, bonds, and short-term debt. The investors buy shares in mutual funds and each share represents an investor’s part ownership in this company. Mutual funds are redeemable, meaning they can sell their shares back to the fund or a broker.
This varies to a closed-end fund, which does not have redeemable shares. Instead of selling them back to the trust, they sell them on to other investors. Closed-end funds also sell a fixed number of shares at one time rather than continuously offering their shares for sale. Closed-end funds are typically used for more illiquid securities than mutual funds because they are permitted to invest in those types of securities.
Finally, Unit investment trusts (UITs) operate similarly to mutual funds in that they issue redeemable securities. They also typically only make one public offering of a fixed number of units, which mimics closed-end funds. However, UIT sponsors often maintain a secondary market so that other investors can buy UIT units from them.
All three of these different types of investment companies vary, and you should choose one that aligns best with your desired outcomes.
Best performing business companies in the UK
If you’re looking to invest in businesses, then here are a few of the UK’s top-performing business companies that could make a less risky investment.
This is a pharmaceutical and biopharmaceutical company in the UK.
Market capital stands at £112.3 Billion
Revenue: £24.3 Billion
Profit $2.9 Billion
A company providing food, drinks, and soaps in the UK.
Market capital stands at £106.8
Revenue: £52 Billion
Profit: $8.7 Billion
- Royal Dutch Shell
A multinational oil and gas company, more commonly known as Shell.
Market capital stands at £100.9 Billion
Revenue: $344.9 Billion
Profit: 421.3 Billion
- HSBC Holdings
A multinational investment bank and financial services holding company in the UK. It is the 7th largest bank in the world and the largest in Europe.
Market capital stands at £84 Billion
Revenue: $55.4 Billion
Profit: 422.2 Billion
A British multination pharmaceutical company that engages in the creation, discovery, development, manufacture, and marketing of pharmaceutical products and vaccines.
Market capital stands at £84 Billion
Revenue: £33.7 Billion
How to choose the right UK investment company
The process of deciding which investment company to choose can be daunting. There are so many possible companies and you must make the right decision.
Begin by assessing your financial needs and set out a list of goals you would like to achieve by investing your money. This is important to refer back to later on in the process to help you focus on which direction you intend to go in.
After this, you should consider the length of your investment and whether you will invest a lump sum or make regular payments. This is associated with the amount of risk you would like to take. All of these factors are important in deciding whether you want to take a safe or riskier investment. This will point you in the direction of particular investment companies.
You must also consider the sorts of people you would like to collaborate with over this time. Specifically, looking at what each firm can offer you as an individual. Use this information to search for possible candidates and review them based on their reliability and the relationship you have with them.
When you have narrowed these down, it is important to check their work background, to ensure their credentials are up to your standards.
More specifically, it is important to look at fees when choosing an investment firm. Every individual firm has fees for each transaction that they do with you. Before deciding on a firm, research these fees as it is possible to be priced out of an investment firm due to fees. Anything more than 10% of your funds on fees is not worth your investment. Therefore, by following these steps and researching the particulars of investment trusts is key in successfully investing your money.
If you’re interested in investing in film and want to see what we can do for you, see our website for more information about our company and our successful projects.
The information contained on this website should not be taken as financial advice or as a personal recommendation by Films4U. Before investing you should always seek appropriate legal and financial advice from an authorised person specialising in investments of this kind.