Investment fund managers (including Banks, Building Societies and Insurance Companies) offer products across a spectrum of risk and potential return.
You can invest in only one Maxi ISA each tax year. There is a £7,000 annual limit, all of which can be invested in Stocks and Shares or a mixture where up to £3,000 can be held in cash and £1,000 can purchase life insurance. Investment fund managers offer products that mirror many of their investment fund products. The investment strategy of the underlying funds will be set out in their promotional material and web-site.
Points to Watch: If you invest in a Maxi ISA you will not be able to invest in a Mini in the same tax year. Look at the terms of non-CAT standard products carefully for hidden charges.
Tax Tips: A Maxi ISA can be invested in single stocks through stockbrokers in order to shelter gains from tax. Capital losses made on stocks purchased within a Stocks & Shares ISA will not be available to offset against gains on stock purchased directly.
Few people use their capital gains tax allowances. If you are unlikely to use yours, it may be better to hold interest yielding assets in your Stocks and Shares ISA (e.g. Gilts and corporate bonds) and capital growth products (e.g. most shares) outside of your ISA.
General
Cash ISAs
Insurance ISAs
Stocks and Shares ISAs
Maxi ISAs
