Advantages & Disadvantages of Investment Accounts

There are typical benefits and drawbacks associated with investment accounts, for example:



Advantages:

• potential for great investment returns
• can invest smaller or large sums of money
• long-term investment possible
• investment managers can monitor the markets to avoid dramatic losses
• chance to purchase second home and earn income / holiday for free
• can save tax-free
• can specify the type of company in which you wish to invest

Disadvantages:

• no guarantee of returns
• potential loss of capital
• long-term investment prevents early withdrawals
• reliance on aptitude of investment manager to make profit
• hidden costs and work involved, e.g. when purchasing a property
• economic crises or market problems may reduce value of investment