8 Reasons to open up a Stocks & Shares ISA

8 Reasons to open up a Stocks & Shares ISA

Opening up a Stocks & Shares ISA could be an effective way to grow your money in the long term, and the popularity of this investment type is on the rise.

With this investment, your money is invested into a fund of Stocks & Shares. If these grow in value, you’ll see growth in your money. There’s risk involved, as the Stocks & Shares could lose value, meaning you could lose money. By taking some risk, you open yourself up to growth opportunities.

Here’s the top 8 reasons to open up a Stocks & Shares ISA today….

ISA Deadline day

ISA deadline day is midnight on April 5th. You’ll lose this tax year’s ISA allowance if you don’t use it before the deadline, as unused allowance can’t be rolled over into the next tax year.

The allowance you can invest in this tax year is £20,000. Invest now and start again with a clean slate in the new tax year beginning on April 6th.

Tax

By using up your ISA allowance, you can achieve maximum tax efficiency for your investments. With an ISA, you do not pay any Capital Gains Tax or Income Tax on any income generated, apart from dividends on ISA investments.

Investments left in an ISA will continue to reap tax-free benefits. Investing as much as you can each tax year, and keeping this investment for the long term, could help you to grow your money towards your goals.

Inflation and weakness of cash ISAs

If you have been saving in a Cash ISA, the probability is that you haven’t seen much significant growth in your money’s value, with inflation typically outstripping interest rates.

In real terms, your money would have lost value, as prices are growing quicker than the money in your Cash ISA account.

With this in mind, you may want to look at a Stocks & Shares ISA that has the potential to beat inflation. A Stocks & Shares ISA is linked to the performance of a fund. If the fund performs well, your return could be in excess of the inflation rate.

Long term goals

A Stocks & Shares ISA could be ideal if your goals are long term. While there is risk of losing money, a long-term strategy could help you to ride out fluctuations in the market. Long term investing also makes sense due to compounding. This is where your investment grows, and the returns from your growth then grow in addition to your original investment.

Inexpensive and straightforward

Investing isn’t as expensive or complicated as some people believe.

At True Potential Investor, setting a Stocks & Shares ISA up is a quick and easy process with our online assessment which will help you to identify if investing with True Potential Investor is right for you. This will help you to assess the level of risk you are comfortable with, and assess your financial circumstances to see if our service is right for you.

You can get a clear breakdown of True Potential Investor costs here. There are no set-up fees, no transfer fees, no top-up fees and no withdrawal fees. You can track your investment from as soon as it is set up.

Globally diversified with major names

Our Stocks & Shares ISA benefits from global diversification, and our fund partners include major investment names you may have heard of such as Wall Street giant Goldman Sachs Asset Management. The stocks and shares included in these funds may include big business names you have heard of, such as tech giants and major retailers.

With global diversification, your eggs aren’t all in one basket. There is risk involved when investing, but diversifying helps to spread out the risk.

Technology

Tracking and topping up your investment is easy with our award-winning technology. The True Potential Investor app has everything you need all in one place so you can track your investments 24/7 from a range of devices or desktop. With impulseSave® you can top up your account on the go from as little as £1.

A brand you can trust

True Potential has been established for ten years, and over £7 billion of assets are under management within our Fully-Managed Investment Portfolios. Our expert in-house team manage your investment, and our fund partners give us access to 9,000 experts in 200 locations around the world. There are no transfer fees, and our online assessment will help you to set up an account that is appropriate to your goals and risk attitude.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.

Personal Finance