The Chelsea Guide to. ISAs

Transcription

1 The Chelsea Guide to ISAs

2 Cotets How much ca I ivest? 7 8 Key beefits of the Chelsea ISA 9 Usure where to ivest? 10 How do I ivest? 11 How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 2 of 12

3 This is a guide to ISAs, or Idividual Savigs Accouts, a tax-efficiet 'wrapper' for savigs ad ivestmets. Quite simply, if you have cash savigs or a ivestmet, there is o reaso ot to use a ISA wrapper. The wrapper is a hassle-free way of savig ad ivestig, whilst keepig the taxma's hads off your moey. There are tax-free allowaces for iterest eared o savigs ad from compay divideds i ivestmets held outside a ISA wrapper, but they are limited ad tax must be paid o amouts above the allowace limit. We therefore believe the ISA to be a 'must-have' wrapper for all savers ad ivestors. How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 3 of 12

4 A ISA is a tax-efficiet wrapper ito which you ca put cash ad ivestmets. There is o capital gais tax to pay o ay capital growth ad ay icome received from the ivestmet or cash savigs, either as iterest or divideds, is free of tax. This meas that you do't have to declare ISAs o your tax retur. There is o otice period for ivestmets which are iside a ISA wrapper you ca access them wheever you wish, although it may take up to 10 days for the moey to clear ito your bak accout. There ca be a otice period for some cash savigs held withi a ISA wrapper, but ot all. This is geerally the case if a provider has a special iterest rate for a certai period ad i retur isists that savers give otice before withdrawig moey. Each tax year we are give a aual ISA allowace. It is a use it or lose it allowace, meaig that if you do t use all or part of it oe tax year, you caot take that allowace over to the ext year. How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 4 of 12

5 From 6th April 2016 there will be five differet types of ISA: 1. CASh ISA Ayoe over the age of 16 ca put their cash savigs ito a Cash ISA. Accouts ca be either istat access, have otice periods or have fixed terms. 2. SToCkS & ShArES ISA Ayoe over the age of 18 ca put idividual shares or maaged fuds ito a Stocks & Shares ISA. 3. IovATIvE FIACE ISA This ISA is for ivestmets i peer-to-peer ledig platforms such as Zopa, ratesetter ad Fudig Circle. You must be over the age of 18 to ivest. 4. help To BuY ISA This ISA has bee itroduced to help first time buyers (over the age of 18) get o the property ladder. For every 200 you save, the govermet will add 25%, up to a maximum bous of 3,000. It's available for buyer, ot household, so if you are savig with a parter, the bous potetial is up to 6,000 towards your house deposit. 5. JuIor ISA (for childre uder the age of 18) Cash or ivestmets ca be wrapped i this ISA o behalf of childre uder the age of 18. B: You must be a uk residet or crow employee to ivest i ay type of ISA How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 5 of 12

6 how much ca I ivest? The Cash ISA*, Stocks & Shares ISA ad Iovative Fiace ISA* all have a aual allowace of 15,240. You ca ivest up to the full amout i oe of these types of ISA, or you could share the allowace betwee the three. You ca kick start your help to Buy ISA* with a lump sum deposit of up to 1,200. You ca the save up to 200 a moth. You have to choose betwee either a Cash ISA or a help to Buy ISA, but you ca have a help to Buy ad a Stocks & Shares ISAs i the same tax year. The Juior ISA has a allowace of 4,080. *please ote, Chelsea does ot curretly offer this type of ISA. how much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 6 of 12

7 how much will it cost? Whe decidig o the type of ISA ad asset i which you wat to ivest, it is importat to cosider the charges ivolved. ISA moey saved ito cash does ot icur ay iitial or aual charges, but ISA moey ivested ito a fud, idividual stock or peer-to-peer ledig platform does, ad charges vary from provider to provider. Chelsea offers the Stocks & Shares ISA ad Juior ISA. Chelsea charges 0.4% per aum ad our FudStore platform, powered by Cofuds, charges a further 0.2% per aum. These charges have curretly bee waived o the Juior ISA, which ejoys a 0% service charge. There will the be a separate charge for the fud(s) i which you ivest. This is typically 0.75% per aum but varies from fud to fud. ulike some other providers, the charges from Chelsea are all-iclusive ad there are o extra, surprise fees for thigs like telephoe or postal dealig, pritig valuatio statemets ad switchig. So if you chage your mid about your ivestmet ad wat to move it ito aother fud(s) you ca do so at o extra cost. For full details of our charges, please visit our website: How much ca I ivest? how much will it cost? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 7 of 12

8 key beefits of the Chelsea ISA Easy ad straightforward way of savig for your fiacial future Ivest up to 15,240 per aum i our Stocks & Shares ISA ad up to 4,080 i our Juior ISA Start savig with as little as 50 per moth or as a lump sum Choose from more tha 2,500 fuds o the Chelsea FudStore Exclusive Chelsea fud research ad risk ratigs to help you decide where to ivest Selectio of Chelsea EasyISAs ad Juior Easy ISAs for those watig ready-made portfolios oe all-iclusive fee with o surprise extras 0% service fee o the Juior ISA protects the ivestmet from icome ad capital gais tax o eed to declare o a tax retur Access to your capital whe you eed it (please ote you a child caot access their Juior ISA util their 18th birthday) How much ca I ivest? key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 8 of 12

9 usure where to ivest? With the Chelsea ISA, you have a amazig choice of fuds ad, as with all our other ivestmet products, we aim to help you build a portfolio that will meet your objectives. We kow that havig such a large choice of fuds ca be overwhelmig, so we offer differet ways to help you arrow dow your ivestmet choice: Firstly, we have produced five Chelsea EasyISAs: Aggressive, Balaced, Cautious, Icome ad Global Icome, each ivestig i six differet fuds, carefully selected from our Selectio list, with varyig risk ratigs. We also have a rage of three Juior EasyISAs: Aggressive Equity, Balaced Equity ad Core Equity All our EasyISAs are desiged for ivestors willig to forego the security of savig i cash for potetially higher returs over the medium to loger term. They offer diversificatio with log-term growth ad you simply select the oe which best suits your ivestmet style ad objectives. CAuTIouS growth EASYISA BlackRock UK Absolute Alpha Jupiter Strategic Bod Ma GLG Strategic Bod Old Mutual Global Equity Absolute Retur Hedged* Rathboe Global Opportuities Woodford Equity Icome AvErAgE AuAl maagemet ChArgE 0.68 % AvErAgE ogoig ChArgES FIgurE (ocf) 0.81% *A performace fee may be applied BAlACED growth EASYISA AXA Framligto America Growth AXA Framligto UK Select Opportuities Hederso Strategic Bod Hederso UK Absolute Retur* Liotrust Special Situatios Threadeedle Europea Select AvErAgE AuAl maagemet ChArgE 0.77%* AvErAgE ogoig ChArgES FIgurE (ocf) 0.85% How much ca I ivest? Key beefits of the Chelsea ISA usure where to ivest? How do I ivest? Page 9 of 12

10 usure where to ivest? (cotiued) Fially, we have the Chelsea Core Selectio ad Chelsea Selectio lists which cotai fuds the Chelsea research team believe to be the best of breed. AggrESSIvE growth EASYISA BlackRock Europea Dyamic JOHCM Global Select* JOHCM UK Dyamic* Legg Maso Clearbridge US Aggressive Growth Marlborough UK Micro-Cap Growth AvErAgE AuAl maagemet ChArgE 0.73*% AvErAgE ogoig ChArgES FIgurE (ocf) 0.88% IComE EASYISA Aviva Ivestors Multi-Strategy Target Icome YIELD: 4.70% PAID: MONTHLY Ivesco Perpetual Mothly Icome Plus YIELD: 5.50% PAID: MONTHLY M&G Global Divided YIELD: 2.95% PAID: MAR, JUN, SEP, DEC Stadard Life UK Equity Icome Ucostraied YIELD: 3.74% PAID: MAR, JUL Threadeedle UK Equity Alpha Icome YIELD: 4.30% PAID: JAN, JUL TwetyFour Dyamic Bod YIELD: 4.63% PAID: MAR, JUN, SEP, DEC AvErAgE AuAl maagemet ChArgE 0.78% AvErAgE ogoig ChArgES FIgurE (ocf) 0.88% global IComE EASYISA Artemis Global Icome YIELD 3.21% PAID: OCT, APR BlackRock Cotietal Europea Icome YIELD 4.27% PAID: SEP, DEC, MAR, JUN Fidelity Ehaced Icome YIELD 7.05% PAID: NOV, FEB, MAY, AUG Fidelity Global Ehaced Icome YIELD 3.41% PAID: NOV, FEB, MAY, AUG Guiess Global Equity Icome YIELD 2.79% PAID: AUG, FEB Schroder Asia Icome YIELD 3.63% PAID: APR, OCT AvErAgE AuAl maagemet ChArgE 0.75% AvErAgE ogoig ChArgES FIgurE (ocf) 0.94% How much ca I ivest? Key beefits of the Chelsea ISA usure where to ivest? How do I ivest? *A performace fee may be applied Page 10 of 12

11 how do I ivest? Ivestig i a Chelsea ISA could't be easier. olie (with debit card) at By telephoe (with debit card) o Sed us a form (with a cheque): dowload the form our website or call our freephoe brochure lie o oce completed, the form (alog with a cheque made payable to Cofuds ltd or completed direct debit madate) should be retured to: Chelsea Fiacial Services St James hall, moore park road, lodo, SW6 2JS. please ote that our Juior ISAs requires a form to be completed ad caot be opeed olie. Before ivestig, please familiarise yourself with the Terms & Coditios ad key Ivestor Iformatio Documets withi the Documets ad guides sectio of our website. How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? how do I ivest? Page 11 of 12

12 For more iformatio please visit our website or, to talk through the optios available, please call our cliet service team o , who will be happy to help. ImporTAT IFormATIo The value of ivestmets are ot guarateed ad will fall ad rise i value. You may get back less tha you ivested. Yields will fluctuate ad so icome is variable ad ot guarateed. returs may also icrease or decrease as a result of currecy fluctuatios. Tax assumptios are subject to statutory chage ad the value of ay tax relief will deped o your idividual circumstaces. Chelsea Fiacial Services offers a direct/executio-oly service. If you require idividual ivestmet guidace you should seek expert advice. Whilst we may draw attetio to certai ivestmet products we caot kow which of them, if ay is best for your particular circumstaces ad must leave that judgemet to you. or ca we accept liability to cliets who exceed their ISA allowace or otherwise do ot comply with ISA rules. Chelsea Fiacial Services is authorised ad regulated by the Fiacial Coduct Authority. Cofuds is the ISA pla maager for the FudStore. How much ca I ivest? Key beefits of the Chelsea ISA Usure where to ivest? How do I ivest? Page 12 of 12