Investments
Diversify Your Investments
When it comes to investments, there is a wide array of options available, each offering unique benefits and risks.
By diversifying your portfolio, you can maximise potential returns while minimising exposure to specific risks. Here are some common investment avenues where you can hold your deposits and further information where our team can help you build a well balanced portfolio to achieve your financial objectives.
Commercial banks and Building societies
Deposits held in traditional commercial banks and building societies offer a relatively safe and easily accessible option. These institutions provide various types of accounts with different interest rates and terms to suit your needs.
Individual Savings Accounts (ISAs):
ISAs offer tax-efficient ways to save and invest your money. There are two main types of ISAs:
Cash ISA: Allows you to deposit a certain amount each tax year tax-free. You can access the funds whenever needed, making it ideal for short-term goals.
Stocks and Shares ISA: Enables you to invest in a range of assets like stocks, shares, and funds without paying income tax or capital gains tax on returns. It’s a good option for long-term investors seeking higher growth potential.
National Savings and Investments (NS&I):
NS&I offers a range of instruments, including:
Premium Bonds: A unique form of savings where you have a chance to win tax-free prizes instead of receiving interest.
Income Bonds: These provide regular interest payments, offering a stable income stream.
Investment account: A straightforward savings account with competitive interest rates.
Please note that NS&I products and deposit accounts are not regulated by the Financial Conduct Authority.
Asset-backed investments:
Consider asset-backed investments for potentially higher returns. Options include:
Shares: Invest in company shares, potentially earning dividends and capital gains (taxable).
Gilt-edged Securities: Government-guaranteed bonds with fixed interest rates, providing stability without Capital Gains Tax.
Unit trusts: Pool money into diversified funds, managed professionally, with tax considerations including income tax and potential Capital Gains Tax.
Please be aware that equity-based investments do not provide the same level of capital security as deposit accounts.
Open-ended investment companies (OEICs) or unit trusts:
OEICs and unit trusts are managed funds that pool investors’ money and invest in a diversified range of assets. They are open-ended, meaning the fund can issue or redeem units based on demand.
Investment bonds:
Investment bonds involve a lump-sum investment, offering potential long-term growth. Withdrawals are possible, but tax implications may apply depending on your circumstances.
Diversifying your investments can be a smart strategy to achieve your financial goals. It’s essential to consider your risk tolerance and investment horizon when choosing the right mix of investment options.
Responsible investment
Responsible investment, often referred to as Environmental, Social, and Governance (ESG) investing, is a strategy that goes beyond traditional financial considerations and takes into account the broader impact of investments on society and the environment.
ESG factors involve evaluating a company’s performance in areas such as climate change, carbon footprint, labour practices, diversity and inclusion, human rights, and corporate governance. By integrating ESG criteria into investment decisions, responsible investors aim to support companies that demonstrate responsible and sustainable practices, thereby contributing to positive social and environmental outcomes while seeking financial returns.
ESG investing reflects a growing awareness of the interconnectedness between business practices and their impact on society, making it an important avenue for investors seeking to align their financial objectives with their ethical values
Our experts will be happy to assist you in creating a well-rounded investment plan.
For personalised advice and guidance, contact us.
Remember that tax treatment varies based on individual circumstances and may change over time. Disclaimer:
The information provided in this article is for general awareness and should not be considered financial advice.
The value of your investments can go down as well as up, so you could get back less than you invested.