What is a global growth fund ISA?
Global growth fund ISAs can provide investment opportunities around the world. A global growth fund can be defined as a fund which invests at least 80% of its assets in equities across the globe, excluding the UK.
As well as the opportunity for long-term growth through a geographically diverse investment portfolio, global growth fund ISAs can offer the potential for tax-efficient returns, because investments held in an ISA are exempt from capital gains tax.
How global growth fund ISAs work
Global growth fund ISAs normally have several features which can make them an attractive option for investors looking for a good return on their savings.
- A global growth fund ISA will specialise in global equities with the intention of achieving maximum investment growth.
- Unlike region-specific funds, such as Asia-Pacific funds, global funds are geographically diverse, incorporating companies across all regions (excluding UK investments).
- Global growth fund ISAs are intended as medium to long term investments, and generally perform better over the long term than some other asset types, including cash.
- Growth funds tend to be higher risk funds, and the value of your investment could therefore rise and fall across the term of the plan. Because of this, global growth fund ISAs are ideal for those looking to build their savings over longer periods of time.
To make sure any investment opportunity is a good match for the level of risk and return you are looking for, it is highly advisable to consult an independent financial advisor.
A global growth fund ISA may be suitable for you if:
- You are happy to wait five years or more to access your money and you don't require an immediate income from it.
- You are happy to accept a level of risk - global growth fund ISAs can offer good long-term potential returns but may be volatile in the short term.
- You are interested in exploring a geographically diverse range of funds and investment areas.
- You are saving with the future in mind. Putting your ISA allowance into a global growth fund can offer the potential for higher returns in the long term.
Alternatives to global growth fund ISAs
If you are looking for more short term returns or a regular income, there are various other types of investment ISAs you can consider. These can pay a return within as little as a year, or pay out monthly, quarterly, every six months or yearly.
A professional investment consultant will be able to help you identify the best type of tax-efficient investment opportunity for you.
Compare global growth fund ISAs
Making the right choice about which investment product offers the best match for the level of return and risk you are looking for can be difficult when there are so many different options. Our ISA comparison tool, found at the top of the page, simplifies things by allowing you to compare top deals on global growth fund ISAs and various other investment ISAs from all the leading lenders. That way you can quickly make an informed decision about which opportunity is right for you.
