Investing in stock or bond index can be prohibitively expensive due to dealing costs. For individuals wanting this type of investment, Thomas Miller Investment offers you Passive investment (see key features document attached below).
Passive investment aims to replicate the performance of a stock or bond index. It is also known as index tracking. You are able to invest using collective investment schemes (funds) including exchange traded funds to track indices.
Your passive fund manager aims to provide returns that are closely in line with the index concerned. For example, a passive fund manager aiming to achieve the return available from the largest 100 companies listed on the London Stock Exchange would seek to track the FTSE 100 index. They may therefore choose to buy all of the holdings in the same proportion as they are held in the index.
Consequently, a passive fund manager will not make any 'active' decisions about which companies are likely to provide the highest returns for investors. As the companies held are not monitored for outperformance it means passive funds often have lower charges than active funds, providing you with a cost-effective route into index tracking.