PICK INVESTMENTS WISELY, HOLD THEM ASTUTELY

Planning how you will fully utilise your current Individual Savings Account (ISA) tax-efficient allowance is important, but it’s even more important to make sure you hold your investments in the best place, as demonstrated by The Association of Investment Companies (AIC) who took a look at investment company performance data when the full ISA limit is invested.

If you had invested a lump sum of £15,000* into the average investment company ten years ago, you would now have £38,323.50, £6,433.90 more than the same investment in the FTSE All-Share, which would generate £31,889.60.

If you had invested £15,000 ‘per year’ for the past ten years into the average investment company, you would now have £272,811.

Scott Herbert, (left) Partner and IFA from Clarke Nicklin Financial Planning, explains:

“In share price total return terms, the highest performing sector over a ten-year period was Sector Specialist: Biotechnology & Healthcare. If you had invested last year’s ISA allowance of £15,000 into the average Sector Specialist: Biotechnology & Healthcare company ten years ago, you would now have an impressive £76,363.50.

 “Investment companies have a strong long-term performance record and their closed-ended structure allows managers to take a long-term view. With other features such as the independent board, the ability to gear to enhance returns and their income advantages, investment companies (if appropriate to your particular situation) should be considered when it comes to making the most of your £15,240 2015/16 ISA allowance.”

*Calculated using the ISA allowance for tax year 2014/2015

Please note: The value of investments and income from investments may go down as well as up.
You may not get back the original amount invested.

This article is for information purposes only and should not be construed as advice. Please seek professional financial advice before acting, or not acting, on this information.

Clarke Nicklin financial planning is a trading name of CNFP LLP, a Ltd Liability Partnership registered in England and Wales No.OC324909. CNFP LLP is an appointed representative of Lighthouse Advisory Services Ltd which is authorised and regulated by the Financial Conduct Authority.

 0161 495 4700 enquiries@cnfp.co.uk www.cnfp.co.uk