Published on September 11th, 2014 | by Pete0
The Benefits of Wrapping your Investments
The inter-connected worlds of finance and investment are extremely complex, and defined by excess jargon and words that do not necessarily have clear or concise meaning. Some examples of jargon or extremely important, however, as they just so happen to be relatively unheralded words that relate to something extremely purposeful. Take ‘investment wrapping’, for example, which combines all of your assets and holds in a single, easily accessible place.
3 Important Benefits of Investment Wrapping
Offered by specialist financial service providers such as James Hay, investment wrapping has multiple benefits for individuals with a reasonable level of wealth. These include: –
1. Manage your Investment Portfolio in a Simple and Hassle Free Way
While a diverse investment portfolio may be crucial to your long-term success in the world of finance, this can make it difficult to manage your interests over a prolonged period of time. Investment wrapping provides strong administration services, however, so that you can effectively collate your investment information and pull them together into a single place. This is absolutely pivotal, as it enables you to review data quickly and execute effective, real-time investment decisions. When you consider the volatile nature of some markets, this could make the difference between success and ultimate failure.
2. Buy and Sell Efficiently and at a Lower Cost
If we consider the forex market, for example, investors are often required to trade in an extremely volatile environment for margin-based returns. This means that it is possible to lose far more than you have initially invested, so it is important that you time your transactions precisely and in a way that transcends sudden market changes. Investment wrapping enables you to do this consistently, as it provides a medium through which trades can be executed instantly and often at a lower financial cost. This should be ignored; especially of you deal regularly in derivatives or vulnerable markets.
3. Access Tax Advantages through Investment Wrapping
On a final note, it is important to note that investment wrapping offers potential tax advantages. This is important, as not all investment vehicles are created equal and while some are liable for capital gains tax others are not. Keeping track of this information is exceedingly difficult, but partnering with a reputable investment wrapping service provider will offer you a clear insight into any potential tax advantages that may exist through your portfolio. Once these have been identified, you can maximise your returns and achieve all of your financial goals in time.