ISA Ideas

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2012-13 Investment ISAs

Looking to use your investment ISA allowance for 2013/14 before the 5^th April deadline? Want to transfer your stocks and shares ISA to a new provider for a better deal? Read on for our latest investment ISA ideas.

 

James Caldwell, Director

Growth Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 Enhanced Kick Out Plan	Investec Bank plc		Up to 5 years	8.5% per annum	More Info >
8.5% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging) Potential to mature early, from year 1 onwards Available for ISA, ISA transfer and direct investment Investment deadline ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall Minimum investment £3,000 Product designed to be held for the full term
	FTSE 100 Defined Returns Plan Investec Version	Investec Bank plc		Up to 5 years	67.5%	More Info >
Fixed return of either 40.5% at the end of year 3 or 67.5% at the end of year 5 provided the FTSE 100 finishes higher than its starting value (subject to averaging) Potential to mature early at the end of year 3 Available for ISA, ISA Transfer and Direct Investment Investment deadline ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall Minimum investment £3,000 An arrangement fee applies to this plan Product designed to be held for the full term
	UK Giants Selector Plan	Morgan Stanley		6 years	Unlimited	More Info >
Growth linked to the performance of the best-performing 11 shares from the 20 largest FTSE 100 companies Available for ISA, ISA transfer and direct investment Investment deadline ISA transfers - 24 May 2013 Investment deadline for direct and ISA - 3 June 2013 Capital is at risk if the FTSE 100 Index has fallen by more than 50% at maturity from its starting value, in which case your initial investment will reduce by 1% for each 1% fall Minimum investment £3,000 Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Income Investment ISA Selection

Provider	Plan Name	Counterparty	ISA Option	Term	Maximum Potential Return	More Info
	FTSE 100 Enhanced Income Plan	Investec Bank plc		6 years	5.76% fixed income per annum	More Info >
5.76% income paid regardless of the performance of the FTSE 100 Monthly income Available for ISA, ISA transfer and direct investment  Investment deadline for ISA transfers - 10 May 2013 Investment deadline for direct and ISA - 24 May 2013 Capital is at risk if the FTSE 100 Index falls by more than 50% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall Minimum investment £3,000 Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. Income and growth returns are not guaranteed. There is a risk of losing some or all of your initial investment due to the performance of the underlying Index or commodity. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

2013-14 Investment ISA Allowance

If you haven't yet used your 2013/14 investment ISA allowance of £11,520, you've still got until 5th April 2014 to make use of this tax-efficient home for your money. Equally, if you already have a stocks and shares ISA that's not performing as well as you'd like, it pays to research the market - and switch providers if necessary - in order to make sure your investments are working hard for you. Whether you're new to investment ISAs or shopping around for a new provider, here are a few important factors to consider before you sign up:

Rate of return

A vital consideration for any investor is: 'How much profit can I expect to generate from my capital?' It can be tempting to try to determine the potential rate of return by looking at the past performance of a fund you're interested in. However, this isn't necessarily an indication of how the fund will perform long-term. In addition, higher potential returns generally mean higher risk, which leads us on to…

Risk tolerance

Every investor's attitude to risk varies - some people are comfortable accepting more risk than others, especially if they think this will lead to better returns. This approach tends to go hand in hand with a long-term investment timeframe, during which any short-term losses will often be ameliorated by the length of the investment period. Conversely, if you're investing for the short term, you'll probably want to choose a stocks and shares ISA with a lower level of risk because you probably won't have sufficient time to recoup any losses before cashing in your investments.

Investment ISA fees and charges

Because stocks and shares ISAs often require participation by a fund manager or other investment professional, investors are likely in incur fees when they buy or sell shares. Some investors find that self select ISAs are a less expensive choice than standard investment ISAs because they don't require the same level of participation by a financial expert. However, for those who lack the time, expertise or inclination to manage their own investments, a good fund manager may pay off in the long term. It's important to research different providers to make sure you're getting a good balance of expertise, convenience and value for money.

In summary, when it comes to choosing an investment ISA…

Be clear on your objectives - you should have a clear idea of what you want to achieve through investing. Do you want a regular income? If this is the case you may want to look for an investment ISA that offers monthly, quarterly, or semi-annual payments. Do you want more stability for your existing investment? You may want to look for an investment manager with a better  record. Want to cut down your expenses? You might want to find a provider offering lower charges.

Do your research - Before opening a new stocks and shares ISA, or transferring to a different investment ISA provider, research what investment options are available. The tables above contain a selection of investment ISA deals - if you are unsure what to do you should seek independent financial advice.