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What does Jump invest into?

Jump is based on Witan Investment Trust, a well-known and leading global equity investment trust. Witan invests into hundreds of different equities across all major markets and sectors around the world. It also employs a multi-manager approach, which aims to reduce the volatility often associated with using a single manager. 

What are equities?

'Equities' is just another word for shares, and a share is a slice of a company that entitles you to a share of that company’s profit and growth. Shares are normally brought and sold on a stock exchange, such as the London Stock Exchange.

How risky are stocks and shares?

As well as being determined by the success of the underlying company a share’s value can also be affected by external factors such as market sentiment, currency and the economic environment. This means that the value of shares and any dividend income can fall as well as rise and you may not get back the amount originally invested. As a result of this stocks and shares are seen as higher risk than cash where there is normally no risk to your capital (although inflation can erode its value).

Why invest in equities?

Despite the well-publicised ups and downs over recent years, it remains true that equities have tended to deliver better returns than cash and bonds over the long term.

However, please remember that past performance is not a guide to future performance, and that the value of shares and the oncome from them can rise and fall as a result of currency and market fluctuations, so investors may not get back the amount originally invested.

How long should I invest for?

Investors looking to invest in equities should take a medium to long time horizon (5-10 years+).

What are the benefits of diversification?

Investing in one share means that your interests are dependent upon that one company – clearly a risk. The sensible and clear-sighted investor appreciates the importance of spreading exposure and risk by investing in a number of different shares – this is known as diversification. The more variety that is contained in a portfolio, the more secure your investment is against a specific shock in any one area – be it a region or country, a market sector, an investment style, or even an individual investment manager. Quite simply, a larger spread reduces the risk from events affecting particular companies or investment manager styles.

What is an investment trust?

For private investors, constructing a diversified portfolio is often unrealistic from both a financial and practical point of view. Instead, most private investors looking to invest in equities tend to do so through a pooled fund such as an investment trust or unit trust. A pooled fund is essentially a ready-made portfolio, made up of a number of equity holdings.

How do I know which investment is right for me?

Anyone contemplating the purchase of any investment and in any doubt as to the suitability for their own personal circumstances should take independent professional advice. Neither Jump nor Witan Investment Services provide financial advice.

Where can I get advice?

You can find a list of financial advisers in your area on the unbiased website.

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