Savings and investments


There are so many different types of savings and financial investments that it is wise to seek advice.

enquire nowNational Savings products

Some of the least risky of investment options are those offered by National Savings, which raises money on behalf of the UK Government.

While investment returns are not necessarily spectacular and some involve tying your money up for long periods of time, they are nevertheless stable and in some cases tax-free.

They include National Savings Bank accounts and various forms of Savings and Income Bonds.

enquire nowIndividual Savings Accounts (ISAs)

An ISA enables you to accumulate savings in a tax efficient manner as all gains are free from tax, making them particularly attractive to higher rate taxpayers.

An ISA can contain cash deposits, investments in equities, bonds and collectives. Currently, the maximum subscription into ISAs is �11,280 in any one tax year. An individual can invest in two separate ISAs covering Cash, (maximum �5,640), and Stocks and Shares, (maximum �11,280 less what has been invested in cash). For UK equities, you are deemed to pay 10% dividend tax credit in stocks and shares ISAs which cannot be claimed back.

enquire nowEquities

Both cash ISAs and National Savings products are certainly much less risky than buying equities, that is to say investing in the shares of companies listed on a stock exchange. However, equities do offer an upside possibility that National Savings products do not.

You have the possibility of gaining not only a dividend - a proportion of the company's after tax profits distributed to shareholders - but also a capital appreciation. If the price of the shares goes up after you buy them then you have made, on paper at least, a capital gain.

The bad news though is that the value of shares can go down as well as up, which means you risk losing your investment if the price of the shares falls.

enquire nowCollectives

That is why many people prefer collective investments such as unit trusts and investment trusts. In both cases an individual is able to invest in a basket of shares of different companies, that way spreading his or her equity investment risk.

In the case of unit trusts the investor buys a unit - part of a large fund which is itself invested in a variety of companies. An investment trust is a company listed on the stock exchange and whose business is investing in other companies. In both cases the investor is trusting his or her money to the judgement and skill of the fund manager.

Collectives can also invest in fixed interest instruments.

These include UK government stock, also known as gilt edged stock or "gilts" for short. Corporate bonds are also fixed interest instruments and both represent direct borrowing on the part of the issuer of the bonds. They are referred to as "fixed interest" because their cost of borrowing is fixed, while the price of the bonds themselves may float up or down depending on supply and demand.

Traditionally, fixed interest investments have been regarded as a safe option. But it is important to remember that not only do they fluctuate in price, but also that the investor risks that the issuer may not be able to pay the interest (coupon) on the bonds, or the principal when the bonds mature.

Armed with these explanations of what types of financial instruments there are to choose from, you can now seek advice as to which ones we recommend as best suiting their risk and reward profile.

Contact Asset Wealth Management LLP for further information

Asset Wealth Management LLP

Hertfordshire Office (Head Office):
10 Station Road
Letchworth Garden City
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Tel: 0845 170 0000
Fax: 0845 170 1000
[email protected]

Registration Address: As Above
Registered in UK, No:OC304510

Mandeep Basra
Amardip Kaur Basra
Asset Wealth Management LLP is Authorised and Regulated by the Financial Conduct Authority.
Asset Wealth Management LLP is entered on the Financial Services Register ( under reference 226032