Abstracts » Business

Essential selection

Article Abstract:

Investors in British individual savings accounts (Isas) have a range of providers to choose from, and charges vary, with most brokers charging a plan fee of 0.5% of the value of the account. Online investing tends to involve lower charges, though self-select Isas are not offered by all online brokers. Self-select Isas can include unit trusts as well as stocks, though few providers of these Isas allow investors to choose foreign stocks. Aim stocks cannot be included in ISas or in personal equity plans.

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Advantages of the DIY route

Article Abstract:

United Kingdom self-select personal equity plans (Peps) are especially suitable for investors who already manage a portfolio. Most investors prefer managed funds which cut risks and offer professional management, but self-select funds do not have an initial fee while managed funds may have a 6% initial fee. Low commissions are important for investors in self-select funds who change holdings often. Investors may wish to hold cash, or seek stocks while bargains appear to be available. Preference stocks and other fixed-interest stocks may also be appealing.

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Counting your chickens

Article Abstract:

Regular savings plans offer the security of reduced exposure to bad timing, and so remove troughs and peaks. They allow people to use individual savings accounts (Isas) to gain access to stocks and shares despite only having small sums available to invest. Isas allow people to invest across the globe, unlike the previous British scheme with tax benefits, the personal equity plans (Peps). There are funds available for different types of investors, from novices to experienced investors prepared to take on risk.

Taxation, Cover Story, Savings accounts

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