Could investment companies help you save towards the holiday of a lifetime?

Now that the ‘Beast from the East’ and Storm Emma have given way to grey skies and drizzle, the yearning for sunnier climes is one that many Britons may be feeling at the moment. Interestingly, in a survey by the Association of Investment Companies (AIC) of the “sandwich generation” last year, 42% of people said they expect some of their savings to be used on a holiday. But with interest rates still near a record low, how could investors try and maximise their savings to transform a normal holiday into a holiday of a lifetime?

Many people now look to celebrate special occasions with memorable holidays and planning a long time ahead isn’t uncommon. If a couple regularly invested £50 each (£100 total) a month into the average investment company (excl. VCTs) over five years to the end of February 2018, their £6,000 saving would be worth £8,326. If a couple regularly invested £50 each (£100 total) a month into the average investment company (excl. VCTs) over the last 10 years, the £12,000 saved would have returned a whopping £23,770. 

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies said: “Usually we talk about saving for university, retirement or other worthy causes but saving for the holiday of a lifetime is particularly appealing. We’ve found some memorable holiday options including a road trip to southern California and a safari in Zimbabwe which are a great inspiration to save for. However, it’s important to remember markets are volatile and saving via the stock market can be a bumpy ride. If investors are unlucky with their investments they might have to wait much longer than planned for that special holiday.

“Investment companies give investors access to the long-term potential of the stock market and have strong long-term performance. They invest in a range of investments on your behalf to spread investment risk and there is a diverse selection of sectors and risk profiles to choose from. Saving regularly from as little as £50 a month helps to smooth out the highs and lows of markets because investors buy more shares when markets are poor and less when markets are strong. If investors have any doubts about investment companies and their suitability they should speak to a financial adviser.”

Holiday options

What kind of holiday could a savings pot get you? According to luxury tour operator Scott Dunn, there are some memorable holiday options. For a couple with £8,326 to spend, you could consider their 10-night southern California road trip holiday from San Diego to Los Angeles, which includes a stay in the iconic celebrity favourite Hotel Bel Air in Beverly Hills. For a family of four, Scott Dunn recommends a 9-night family adventure to Morocco. With a combination of the souks of Marrakech, trekking in the Atlas Mountains and relaxing by the beach providing something for all the family.

For a couple who had a pot of up to £23,770 to spend, Scott Dunn suggests their unforgettable 15-night safari in Zimbabwe where you can get up close to black rhino, trek along the Chilojo Cliffs and fish for bream on the Save River before heading to the white sandy beaches of Mozambique with water rich in marine life, perfect for snorkelling and diving. For a family of four, perhaps an 11-night family adventure to Costa Rica to explore the country’s diverse natural highlights, including volcanoes, rainforests and golden sandy beaches in an action-packed holiday that offers the opportunity for zip-lining, 4x4 tours, horse riding, surfing, mangrove kayaking and white-water rafting, to name a few.

Commenting on the increased popularity of ‘once in a lifetime’ holidays, Graham Horner, Chief Marketing Officer at Scott Dunn said: “Increasingly people are choosing to celebrate significant occasions by travelling with friends and family on a once in a lifetime trip, rather than have a party at home. To capitalise on this trend, we have launched a collection of seriously special travel experiences designed with celebrations in mind which make it easy for guests to do something totally amazing and memorable.”

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Notes

1. Performance data is share price total return at 28 February 2018. No expenses taken into account. Source: Morningstar.
2. Scott Dunn offers a 10-night Southern California itinerary from £4,200 per person, this is based on 2 people sharing and includes international and domestic flights, accommodation and hire car. For more information visit: https://www.scottdunn.com/luxury-tours/hip-socal-honeymoon
3. Scott Dunn offers a 9-night Morocco adventure from £2,100pp based on a family of 4 on a B&B basis, including flights from the UK, private transfers and a selection of activities. For more information visit: https://www.scottdunn.com/luxury-tours/a-family-adventure-to-morocco
4. Scott Dunn offers a 15-night African honeymoon from £12,000 per person, based on 2 people sharing, including flights from the UK, accommodation and private transfers. For more information visit: https://www.scottdunn.com/luxury-tours/zimbabwean-safari-and-mozambican-beach-ultimate-african-honeymoon
5. Scott Dunn offers an 11-night Costa Rica itinerary from £6,000 per person based on a family of 4 sharing and includes flights from the UK and transfers. For more information visit: https://www.scottdunn.com/luxury-tours/costa-rica-rainforest-volcanoes-beach/prices
6. The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment.  Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 347 members and the industry has total assets of approximately £174 billion.
7. Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance.  The value of investment company shares, and the income from them, can fall as well as rise.  You may not get back the full amount invested and, in some cases, nothing at all.