Isa safety

AndyPerkins

Can anyone tell me how safe Isas are? If I put money in, can I lose the initial investment?

dunstonh

ISAs are just a tax wrapper. Inside that wrapper you can put a large range of different investments ranging from low risk to high risk. So, if you go down the high risk route, you could lose your initial investment. This is highly unlikely if you go down the low risk route.

carnet

Depends totally on which type of ISA you are referring to.

Mini Cash ISA's are basically just glorified tax-free Bank/BS savings accounts and are as safe as any other types of Bank/BS accounts.

On the other hand, Stocks and Shares ISA's run the whole spectrum of risk, depending on what types of investments you put into them - obviously Bonds and the like are rather less risky than, say, Small Cap. Australian Miners (or even Manek Growth ).