No easy answers in cheap Peps

Article Abstract:

United Kingdom personal equity plans (Peps) offer tax advantages for investors up to limits of 6,000 pounds sterling for general Peps, in addition to 3,000 pounds for single company Peps. Investors can cut costs by using discount brokers to buy Peps, if they already know what they want to buy. Buying direct from Pep managers is more expensive. Performance may be similar for some types of Pep, so charges are important. Index trackers offer low costs and can perform better than active funds.

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Starting early

Article Abstract:

United Kingdom investment and unit trusts can be held tax free in individual savings accounts (Isas). There are advantages in saving through regular savings schemes, which offer easy access to the stock market while reducing the risks. Regular savers can buy more stocks when prices fall. There is a wide range of funds with different risk levels. There are a number of funds which are performing well, and investors should also consider costs such as initial and annual charges.

Taxation, Savings accounts

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Guaranteed price to pay

Article Abstract:

Guaranteed corporate-bond personal equity plans (Peps) are available for UK investors from a number of sources and have proved attractive, but they may not provide good returns. General Accident is among fund managers launching this type of product. Investors could purchase low risk bonds and hold them through self-select Peps, obtaining a higher yield without increasing risks significantly. This type of Pep involves a higher charge but it would still leave better returns.

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