Investing is not just for the super wealthy. In fact, anyone who is over 18 and a UK citizen can invest into an Equity ISA, and there are three ways you can do it:
Investing a Lump Sum
Quite often people invest a lump sum of money into their ISA. This may be because they have the money available and want to take full advantage of any potential growth, or because the end of the tax year is looming.
The minimum amount you can invest as a lump sum varies between funds, but it is usually £250. You can also invest your entire £15,240 2016/17 ISA allowance as a lump sum, and thanks to fund platforms, you don’t have to invest all of it in one fund.
If you don’t have a lump sum of money to invest, or simply don’t want to invest a large amount in one go, you can make small, monthly, contributions into your ISA.
You can contribute into your ISA from as little as £50 per month. It is a great way to build up a large sum of money over a long-period of time. It also helps smooth out the ups, and downs, of stock market investing because of a term called ‘Pound-Cost Averaging‘, which basically means when markets are lower, your £50 contribution will buy a greater amount of units in a fund, and when markets are higher, you buy fewer.
Setting up monthly payments into an ISA is easy, please call 0800 294 7221 to find out more.
Phasing your investment is a great way of investing a lump sum, without putting all of your money into the markets at once.
How phasing works
If you want to invest £6,000 for example, the fund provider will divide this into six equal amounts and invest the first instalment (£1,000) immediately. The rest is held in a cash account and invested in five equal amounts over a five month period.
This option works on the same principle as monthly investing, but in a much shorter time-frame.
If you would like to invest by Phasing, please call 0800 294 7221.