Investment Options

Jusy a few types of Investment Products

Stocks & Shares
Investing in individual stocks gives you ownership in a company, allowing you to benefit from capital appreciation and dividends. Stocks can offer significant growth potential but come with higher risk, making it essential to diversify your portfolio.

Bonds / Fixed interest
Bonds are fixed-income securities that involve lending money to a government or corporation in exchange for periodic interest payments. They are generally considered less volatile than stocks and can provide steady income, making them suitable for risk-averse investors.

Investment Bonds
Investment bonds combine life insurance with an investment component, allowing you to benefit from potential growth while providing a death benefit. They can be tax-efficient due to their 5% deferral rules, especially for higher-rate taxpayers, and can help manage inheritance tax.

Mutual Funds
Mutual funds pool capital from multiple investors to create a diversified portfolio of stocks, bonds, or other securities. Managed by professionals, mutual funds are a convenient option for those seeking diversification without needing to manage individual investments.

Exchange-Traded Funds (ETFs)
ETFs operate similarly to mutual funds but trade on stock exchanges like individual stocks. They offer diversification and typically lower fees, making them an attractive choice for many investors looking for a cost-effective investment strategy.

Real Estate Investment Trusts (REITs)
REITs enable you to invest in real estate without directly owning properties. They provide exposure to the real estate market and typically offer attractive dividends, making them popular among income-focused investors.

Tax Wrappers

Tax wrappers are financial products that allow you to hold investments in a tax-efficient manner, helping you maximise your returns by reducing tax liabilities. Here’s a closer look at some key wrappers available in the UK:

Individual Savings Accounts (ISAs)

ISAs are tax-efficient savings and investment accounts that allow you to earn interest or returns without paying tax on them. This makes them an excellent vehicle for both short-term and long-term saving. You can hold cash, stocks, shares, or funds within an ISA, taking advantage of tax-free growth.

Lifetime ISAs (LISAs)

LISAs are designed to help individuals save for their first home or retirement, providing a government bonus on contributions. This can significantly enhance your savings potential and is a valuable tool for younger investors.

Investment Products with Tax Benefits

Venture Capital Trusts (VCTs)

VCTs are investment products that provide capital to small, unlisted companies. They offer attractive tax incentives, including income tax relief and tax-free dividends, making them appealing for investors looking to support emerging businesses while minimising tax liability.

Enterprise Investment Schemes (EIS)

EIS offers tax relief to investors who purchase shares in small, high-risk companies. Investing in EIS-eligible companies provides significant tax benefits, including income tax relief and capital gains tax deferral.

Seed Enterprise Investment Schemes (SEIS)

SEIS is aimed at very small, early-stage companies, offering generous tax incentives for investors willing to take on higher risk. This scheme encourages investment in nascent businesses while providing substantial tax relief.

AIM Shares

Investing in shares listed on the Alternative Investment Market (AIM) can provide growth potential and certain tax benefits, including relief from inheritance tax, making them an appealing option for wealth management.