Equity or Shares

Michael Hannon Financial Services is not an Investment Manager or Stockbroker. We offer professional advice to our customers regarding your investment and savings objectives and assess your risk profile. At this point Michael Hannon Financial Services will research the market for the most suitable investment and/or savings products to meet your financial needs and objectives.

There are many different structures allowing access to investment or savings in the equity markets. This choice allows you flexibility to get the best fit for your risk profile and in turn to achieve the return you need from that investment to meet your financial needs and objectives:

The main types of products invested in equities are:

  1. Fully Protected funds - suitable for lump sum investments in the low to medium risk category which protects 100% of the capital you invested with unlimited growth potential should the markets perform over the term. Most of these types of funds have only 40% to 60% holding in equities with the balance invested in Fixed Interest Securities or property and therefore can under perform other equity investments.
  2. Tracker funds - lump sum investments in the low to medium risk category. They are then signed to protect your capital but also offer the potential to share in the growth by tracking a global share index or some basket of shares.
  3. Protected funds - suitable for lump sum investments in the medium risk category which typically offer an 80% to 85% guarantee on your capital and some may lock in 80/85% of any growth within the fund.
  4. Consensus funds - suitable for regular savings or lump sum investments and are medium risk type investments, designed to mirror or track the average performance of a particular fund manager or share index.
  5. Balanced funds - a medium risk investment type suitable for lump sum or regular savings offering you asset class diversification with a mix of Shares, Property, Cash and Fixed Interest Securities within the fund.
  6. Index funds - higher risk investments/savings contracts which track a market index in a particular jurisdiction such as Ireland, UK, Europe, Dow Jones (US), Asia Pacific etc.
  7. Aggressively managed funds - designed to outperform other funds in its class. These are high risk investments and may yield a very high return in relation to other investments but with the added risk of greater losses than more balanced investments.
  8. Geared equity funds - a very high risk investment strategy suitable for lump sum investments. Such funds facilitate borrowing within the fund to increase your exposure to equity markets. When equity markets are up from the original date of investment, the returns on the portion of your investment that is leveraged produces greater returns than non-geared equity investments, however, the downside of an over-all fall in the equity markets will accentuate the losses.