skip to main content
31st
Mar 2020
/

How to Invest in A FTSE 100 Tracker Fund Using Your ISA Allowance

How to Invest in A FTSE 100 Tracker Fund Using Your ISA Allowance

Are you looking to use your ISA allowance to invest in a FTSE 100 company? A good way to go about that is via a FTSE 100 Tracker Fund – and here’s how. 

What is an ISA Tracker Fund?

A tracker fund is a collective investment scheme. It follows the movement of a market index (like the FTSE 100).

When the index rises, so too will the value of your fund – and vice versa. An index is made up of a number of stocks and shares, and changes in the shares are used to calculate the index.

Because this is an ISA, you can invest up to £20,000 this tax year as this is the ISA allowance for tax year 2019/2020 – which will remain the same for 2020/2021. The returns you gain from this investment will be protected from the tax man – so for budding or prospective investors, this is well worth taking advantage of.

Why invest in a FTSE 100 Tracker Using my ISA?

There are quite a few benefits to choosing one of these funds:

  1. Investing using your ISA allowance, which allows you to invest up to £20,000 each tax year with no tax on your returns
  2. Generally low costs and allows for diversification of investments
  3. No fee for active management of the funds
  4. Wide variety of choice – while it can be very hands off, you can also opt to ensure you choose your funds.
  5. Simple and straightforward

So, how do I invest?

You can invest directly in a FTSE 100 Tracker fund via a platform. There are many different platforms you can choose to invest through, including:

  1. Legal and General FTSE 100 Tracker Fund ISA
  2. Investec FTSE 100 Enhanced Income Plan
  3. Reyker FTSE 100 Defensive Supertracker Plan

Although you are more than able to invest directly into a fund, you also have the option of buying them through an investment platform. These are also known as a fund supermarket. We’ve done a more thorough blog on these, so make sure you’ve read that.

Fund supermarkets also enable you to invest in other forms of ISAs, including Stocks and Shares ISAs, Junior ISAs, Lifetime ISAs – all while keeping your money safe from the taxman.

Read more about Fund Supermarket ISAs  

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

Lifetime ISAs

Save for your first home and retirement

Compare Lifetime ISAs

Junior ISAs

Invest for your child’s future

Compare Junior ISAs: 

Stocks & Shares ISAs

Invest tax-free in stocks and shares 

Compare Stocks and Shares ISAs:

Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us