Resources

Frequently Asked Questions

  • What is an ISA?

    An ISA is simply a tax wrapper that you are able to hold investments within that is allowed to grow tax free. T. Bailey offer what is called a Stocks and Shares ISA.

    Every adult in the UK is allowed to contribute up to £20,000 into a Stocks and Shares ISA in the current tax year. This money can then grow tax free. The ISA allowance resets every year in April and you get a new year’s allowance. If you don’t use your whole allowance in a year, you lose the unused portion (i.e. it is not rolled over to the next tax year). Setting it up is easy, just fill in your details on the form and we set everything up for you.

  • Why should I invest my money with T. Bailey rather than putting it in the bank?

    It’s always wise to have some money in the bank, enough for short term needs that can be accessed instantly. Unfortunately, over the last decade, interest rates paid by bank accounts have fallen to close to zero (or zero in some cases). This means that because of inflation, your money does not grow in a bank account and once you have accounted for inflation, is actually decreasing in value.

    The aim of the T. Bailey Dynamic Fund is to keep pace with inflation and deliver 3% growth above that. This allows you to save, knowing that not only will the value of your money be maintained but that it will also be worth more in the future.

  • If T. Bailey goes bust – what happens to my money?

    As you would expect, as custodians of your money, the rules that we have to follow are extremely strict. They dictate that all money invested into our funds has to be held in trust separately from T. Bailey.

    This means, in the unlikely event that the worst should happen to T. Bailey, investors’ money is safe and completely separate from the company. Our Trustee is The Northern Trust Company who ultimately hold your money on your behalf.

  • You put my money into a fund. What’s a fund?

    An investment fund is simply a structure that allows the money of many investors to be pooled together. This means that they can invest across a more diverse range of investments that they would have been able to access by themselves.

    In the past, if someone wanted to invest in stocks and shares, they would have needed a lot of money to do it properly. This is because it is risky to own shares in just one company because everything depends on that company doing well forever. Even the most well run companies can have a bad year and even the most well known names sometimes go out of business.

    To protect against this, investors have to be able to buy many holdings that act differently to each other so that if one does not work out, there will be many others that do.

    This is what we mean when we talk about ‘not putting all of your eggs into one basket’ and is the principle behind pooling investors’ money together – you benefit from a more diverse portfolio than you could construct by yourself.

    As an investor you own units in the fund which can then be sold whenever you want your money back. This process takes around 4 days.

  • I’ve never heard of T. Bailey. How do I know I can trust you?

    T. Bailey began in 1999, when we launched our first fund. We were set up to manage the money of a Nottingham family who had sold a local newspaper. The Dynamic Fund launched 7 years later in 2006.

    Twenty years later, the family and staff still invest in exactly the same fund as our customers. We are on your side and our interests are completely aligned. Since we have no external shareholders, as an investor, you come first.

    As you would expect, T. Bailey are registered with the Financial Conduct Authority (FCA) and you can find us and our details on the FCA register https://register.fca.org.uk. Our FCA registration number is 190291.