ISAs

ISAs

An Individual Savings Account (ISA) is a tax-efficient investment vehicle in which you can hold a range of investments, including shares in funds and cash. M&G offers a stocks and shares ISA.

How do ISAs work?

An ISA shelters your investments from personal income tax and capital gains tax.

Please note that any losses made in an ISA cannot be used to offset gains elsewhere. You can subscribe to an ISA if you are:

  • Aged 16 or over.
  • Resident and ordinarily resident in the UK for tax purposes.

There are four main types of ISAs, investing in either stocks and shares, cash, Innovative Finance or a Lifetime ISA:

  • You can transfer money held in an ISA from stocks and shares into cash and vice versa, without affecting your annual allowance.
  • You can invest up to £20,000 in your ISA during the 2019/2020 tax year.
  • You can choose how to split your tax-efficient savings yourself. For example, you can save the full amount in stocks and shares or the full amount in cash – or you can invest in a combination of the two depending on your individual investment needs.
  • Please note: Sterling Class X Shares are no longer available for new investments in The M&G ISA. On our Fund availability and fund types table within the Important Information for Investors document (on pages 4-6 of the attached document) you will find information about the specific share classes available in your choice of fund(s).

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.

The views expressed in this document should not be taken as a recommendation, advice or forecast.

The M&G ISA

The M&G ISA is a stocks and shares ISA only. The entire range of funds is available in The M&G ISA. Due to our focus on long-term investing, The M&G ISA is not a Flexible ISA, Innovative Finance ISA or a Lifetime ISA.

Only income shares are available for the majority of funds offered within The M&G ISA. Income shares entitle the holder to be paid the income attributed to those shares on the payment date. This is usually paid twice a year but may be paid annually, quarterly or monthly depending on the fund. This income can be reinvested in further shares of the same fund if you so choose.

The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.

The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

Share classes and charges

Share classes

  • Sterling Class A Shares carry no entry charge and no exit charge. Please note that an ongoing charge will apply. The ongoing charge is made up of the Annual Charge which may be discounted depending on the size of the fund, and extraordinary expenses. For property funds, the ongoing charge does not take into account the property operating expenses, also known as PER. For information on all our charges, please refer to our Fund Charges page.
  • On our Fund availability and fund types table (on pages 4-6 of the attached document) you will find information about the specific share classes available in your choice of fund(s).
  • Sterling Class R Shares are only available to private investors when you invest via our new online investing service myM&G or through a financial adviser.

Please note that an ongoing charge will apply. The ongoing charge includes direct costs to the fund, such as the annual management charge, custodian charge and administration fee. For property funds, the specific costs of investing in property will also be included. For information on all of our charges, please refer to our Fund Charges page.

Remember to specify the fund(s) and share class in which you wish to invest on your application form. Your application may be rejected if it is only partially completed.

Most funds offer the choice of two share types – Income or Accumulation. Only income shares are available for the majority of funds offered within The M&G ISA.

Learn more about share classes for ISAs by downloading our Important Information for Investors document. You’ll need Adobe Acrobat to read this document.

Investment Limits (per fund)

The table below shows the minimum investment limits in The M&G ISA. From 6 April 2019 to 5 April 2020 the maximum you can invest in an ISA is £20,000. Please note that M&G only offer a stocks and shares ISA.


Investment minimums (per fund)
By monthly Direct Debit By lump sum investment
Initial amount of £10 Initial amount of £500
Top-up amount of £10 Top-up amount of £100

Invest now

Before investing, please make sure you have read the Prospectus, Key Investor Information Documents (KIIDs) and Costs and charges illustration for the fund(s) in which you wish to invest. Here you will find more information about your investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration.

You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions.

You’ll need Adobe Acrobat to view both these documents. 

We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. The views expressed in this document should not be taken as a recommendation, advice or forecast.

Once you’ve chosen the fund(s) in which you’d like to invest and have read the relevant KIID and the Important Information for Investors document, you can:

You can also transfer your existing ISAs with other providers to M&G.

Please note, your current provider may apply a charge when you transfer your investment. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.

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