Investments

Deciding where to invest your money will depend on your specific goals and your attitude to investment risk. There are numerous options available but the main routes are:

Collective investments – These include unit trusts and Open-Ended Investment Companies (OEICs) and can invest in numerous assets, including shares, bonds, government gilts, or property. You usually have the option of making lump sum payments and/or regular contributions. Your money will be invested with the money of other investors, making the costs associated with investing in these assets considerably lower than they would be if you bought them directly. Spreading your money across different investments can reduce the risk your money will be exposed to.

Stocks & shares ISAs – In a lot of cases, Stocks & Shares ISAs invest into collective investments like a unit trust or Open-Ended Investment Companies (OEICs) but the money will benefit from the tax advantages that are not available if you invest into them directly. As a result, there is a maximum amount that can be contributed each year.

Investment bonds – These are life insurance policies where you invest a lump sum in a variety of assets. Despite having a small life insurance element, they are essentially investment products rather than insurance. There are similarities to collective investments like a unit trust or Open-Ended Investment Companies (OEICs), but the returns are taxed differently. Our financial advisers can look at your tax situation to establish which option is most suitable.

Other investments – For people comfortable with taking higher levels of risk for a potentially greater return, there are a number of investment solutions available. Some are designed to encourage investment into smaller companies and, due to the increased risk, they have tax incentives that are not available with other types of investment. Whatever options you are considering, it is essential that you get advice to make sure the solution is suitable.