The Individual Savings Account (ISA) protects your investment from tax. You can invest up to £7,200 in a tax year without paying tax on the income or growth from your investment. However, your allowance works on a ‘use it or lose it’ basis: any unused allowance from one year can’t be carried forward into the next.
It’s also worth knowing that if you are not happy with the performance of your current ISA provider you can transfer any other ISA you hold to M&G.
You may have already used your ISA allowance for the current tax year, but you can still make regular contributions or a lump sum payment to an M&G Savings Plan. The minimum monthly investment is only £10 so the opportunity of investing in M&G’s OEICs/Unit Trusts is available to you, whatever your financial position.
You can buy or sell shares in a company but you may prefer to invest in the stock market through Unit Trusts or Open Ended Investment Companies (OEICs). These are pooled funds of investors’ money managed by specialist professional fund managers who decide how best to invest in order to achieve set objectives. The advantages of investing in this way are that: