About ISAs
As a nation, we pay tax on just about everything these days, so it is important we take the opportunity to avoid paying it when presented.
Every tax year the Government gives you an allowance to put in to an ISA, which is a savings vehicle where gains and income are tax efficient.
Currently the ISA allowance is £10,680. Within this allowance, half can be placed in to a Cash ISA and half in to an Equity ISA. Alternatively, you are able to invest your full allowance in an Equity ISA.
You can invest in an equity ISA from as little as £500 as a lump sum or just £50 if monthly investing is better for you.
What is an Equity ISA?
Equity ISAs, which are often referred to as Stocks & Shares ISAs, allow you to invest in investment funds. Funds spread the risk of stock market investing by investing in a number of individual companies and assets on your behalf. They are run by economic and finance experts know as fund managers, who seek out the companies they feel offer the best investment opportunities.
Funds offer a wide investment choice such as:
- Assets - Shares, Bonds, Gilts, Cash, Derivatives, Commodities
- Locations - UK, Europe, North and South America, Asia (including China)
The fund, or funds, you choose to invest in will depend upon a number of factors such as your attitude to risk, and whether you are investing for capital growth or to get an additional income. Whatever fund you choose you must first ask yourself if you are happy to accept the added risk, which could mean that you get back less than you invested.
