Investment routes

Now you’ve decided upon your M&G funds, this section provides you with information about the different ways you can invest.

The M&G ISA – get tax-efficient
The M&G Junior ISA
The Savings Plan – save how it suits you
OEICs and unit trusts – pool your investments

The M&G ISA – get tax-efficient

An Individual Savings Account (ISA) protects your investment from tax. You can invest up to £11,280 in the current tax year (ending 5 April 2013) in an ISA and that investment will not be liable to personal income tax or capital gains tax. 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.

Remember that ISA tax rules may change in the future, and ISA tax advantages depend on your individual circumstances.

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 - but be aware that your current provider may apply a charge when you transfer your investment.

Find out more about The M&G ISA.

The M&G Junior ISA - Give your child a head start

Education, weddings, a deposit for a home, a new car; there are many reasons why you might like to invest on behalf of a child. We believe that the earlier you start, the greater the service you are doing them.

The Junior ISA is a new government initiative offering investors a straightforward way to save for a child’s future. Junior ISAs offer similar tax advantages to ISAs, with a lock-in making the investment inaccessible until the child turns 18. Like an ISA, Junior ISAs can invest in bonds, equities, cash and even property shares, giving you even more flexibility over the future of the child’s long-term savings. This means your child can now benefit from the growth potential of an expertly managed M&G fund in a tax-efficient way.

Find out more about The M&G Junior ISA

The M&G Savings Plan – a plan to suit your pocket

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 The 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.

Find out more about The M&G Savings Plan.

OEICs and unit trusts – pool your investments

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 professional fund managers who decide how best to invest in order to achieve set objectives. The advantages of investing in this way are that:

• your dealing costs are lower; and
• you benefit from lower risk because your investment is spread across many companies and or bonds instead of being concentrated on just a few.

Please note that prices may fluctuate and you may not get back your original investment.

Find out more about M&G OEIC funds and the M&G unit trust.

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