Help - What are Particular Funds Used For

ParanoidPlanner

Have used the site now for a wee while and am interested if anyone could help me with a website, some information or an explanation as to what these funds feed. I.E.ISA-PENSIONS ETC.

I would imaging that you can only invest in the pension funds if you have a pension. But you can use the UT/Oeic in a tax efficiant manner through an ISA. Is this where the money from investment bonds goes as well - into OEIC-UT Funds?

If so what sort of things do you use to invest in life funds.

Any help would be appreciated as this is beginning to frustrate me now and I bet that its very easy to understand.

dunstonh

Its not as straight forward as it once was.

Pensions invest into pension funds.
ISAs can invest into Unit Trust/OEIC/ITs
Investment bonds into Life funds.

However, its now possible to invest into unit trust/oeics directly with pensions and investment bonds without the need for there to be mirror funds any more.

Its not so much the fund you invest in now but the tax wrapper you use to do it with. ie ISA vs Unit Trust vs Investment Bond (onshore or offshore) vs Pension.

EdInvestor

Particularly as far as equity (shares) investment goes, these tax wrappers don't confer much advantage to basic rate taxpayers and can often be ignored in favour of investing direct, which makes the whole matter much easier to understand .

The benefits are mostly useful to those who pay higher rate tax on a big chunk of their salary..

dunstonh

Particularly as far as equity (shares) investment goes, these tax wrappers don't confer much advantage to basic rate taxpayers and can often be ignored in favour of investing direct, which makes the whole matter much easier to understand .

Too simplistic and inaccurate in a number of scenarios.