Do Guaranteed ISAs exist? (ignore cash ISAs)

RedDragon22

If you wanted to utilise your ISA allowance and wanted some protection/safety net on your initial investment.....does such a vehicle exist?

Not specific on the guarantee....so it could be a safety net after 6 years if left untouched and market falls or some other kind of safety net.

So, criteria..... 1. Safety net at some stage, 2. ISA

Any investment vehicles currently exist????

Thanks

Reaper

Yes. Just type this into Google and you will find plenty of links:
structured investment isa

I'd stay clear of them though.

RedDragon22

Are there any which are not structured products?

As I believe these tend to be higher risk investments.

dunstonh

RedDragon22 wrote: »

Are there any which are not structured products?

As I believe these tend to be higher risk investments.

The higher risk ones are higher risk but the lower risk ones are lower risk.

lisyloo

My undertsanding is that these are gnerally regarded as not good value.

You appear to want higher returns without risk and this is not possible. Risk/return go together.

Have you considered NSI index link certificates which are tax free.
You are guaranteed a small return.

RedDragon22

It is more the existance of such vehicles that I am looking for rather than whether they are good value or not.

I understand returns are not as good as a g'tee reduces the return.

Does anyone have examples of such products which are lower risk?

For example... an investment into an ISA with the potential for growth but with an initial capital g'tee at year 6 if the fund is left untouched (no withdrawals)

lisyloo

This the sort of thing?

http://www.nationwide.co.uk/investments/protected-equity-bonds/

The Legal & General Stock Market Linked Savings Bond 3 is linked to
the performance of the FTSE 100, DJ Euro STOXX 50® and
S&P 500 indices.

Reaper

Sounds like you are after what is common known as a "Guaranteed Equity Bond" (but goes under many other names too).

Are you actually planning on taking one out? If so you need to know the catches - no dividends, final year averaging out, 3rd party involvement etc.

This article will get you started:
Why Guaranteed Equity Bonds Are Highly Suspect

RedDragon22

Below is the offering by the Police Mutual.....does anything like this exist for those outside the Police?????? Must be an ISA though

Guarantee 1
We promise to restore your investment back to its original value after five years from the end of the tax-year in which you invest, if the value of your investments made in each tax-year has decreased because of unfavourable market conditions.

Guarantee 2
We promise to lock in any growth you have achieved in each tax-year’s investment after five years from the end of the tax-year in which you invested. So at the end of the second five year period, the value of your investment is guaranteed not to be less than the new increased guaranteed amount.
So how does the Police Mutual double guarantee work?
The amount you invest each tax-year is treated separately and will always benefit from its own double guarantee.
The first guarantee will be on the 6 April five years after the end of the tax-year in which you make your original investments.
To make sure you continue to make the most of your annual ISA allowance, if you invest in your PMAS Guaranteed ISA in following tax-years your investments will always benefit from the double guarantee applied on the 6 April five years after each tax-year investment.
So if you decide to cash in your investment on a 6 April guarantee date, you will receive at least your original investment including any locked-in growth.

Reaper

Did you miss Lisyloo's post? That is an ISA based GEB.

Annisele

Is there any particular reason that the investment must be eligible to be held within an ISA?

If you're not a higher rate tax payer, and you don't use your full CGT allowance, then in my opinion a stocks and shares ISA wrapper doesn't help you an enormous amount.

(And I agree with other posters that GEBs are generally to be avoided).