Portfolio investment plan FAQ
What is the NFU Mutual portfolio investment plan?
When you invest in the Portfolio Investment Plan, your money buys shares in one or more funds within the NFU Mutual OEIC (Open-Ended Investment Company).
The Portfolio Investment Plan is a medium to long-term investment, and its value can go down as well as up and you may not get back what you invested.
Am I eligible?
You must be aged 18 or over to apply for your own Portfolio Investment Plan. Alternatively, an individual over the age of 18 can invest in a Plan on behalf of a child.
How much can I invest?
You can invest via lump sums or regular contributions. Any lump sum investment must be at least £1,000 (including top-ups), there is no maximum investment limit.
The minimum regular contribution is £25 per month.
What if I want a break from paying regular contributions?
You can stop, restart, increase or decrease your regular payments at any time.
Can I take money out of my plan?
Yes. You can write to us at any time and cash in some or all of your shares but, if you do not surrender them all, you must currently leave at least £1,000 invested and the withdrawal itself must be at least £500.
If you cash in your investment, you may not get back what you have invested.
How can I follow the progress of my investment?
You will receive two statements a year showing all transactions since your last statement and the number and value of your shares.
How much might it pay out?
You can request an illustration of potential benefits by calling our Customer Services Team free on 0800 622 323.
The actual amount will, however, depend on the performance of your chosen fund(s) and any withdrawals made.
Does the Portfolio investment plan produce an income?
Yes. You can choose to take the income generated if you wish. Alternatively, the income will automatically be reinvested into the fund from which it was generated.
What funds are available to invest in?
There are three funds to choose from:
1. NFU Mutual Gilt and corporate bond fund
Risk Rating: Cautious - Balanced: You are prepared to accept some risk to capital for the prospect of better long-term returns. You accept the opportunity for growth may be higher in other investment classes.
Objective: To provide a stable income from a portfolio investing predominantly in gilts and high grade corporate bonds.
Strategy: The fund may invest in fixed, variable and index related securities both within and outside the UK. These may include, but are not restricted to, gilts, other government bonds issued by or on behalf of a government of a EEA state, eurobonds, including asset backed securities and floating rate notes, debentures, secured and unsecured loan stock and preference shares.
2. NFU Mutual Global growth fund
Risk Rating: Balanced - Adventurous: You are willing to accept significant capital risk for the prospect of good long-term growth. You are happy to maintain very high or total exposure to equities and accept that equities can have volatile capital values.
Objective: To achieve long-term capital growth through investment in any country and in any economic sector of the world.
Strategy: Although investments may be made in any country, the bias of the fund will be towards the world's major equity markets, particularly North America, Europe and Japan.
3. NFU Mutual UK growth fund
Risk rating: Balanced - Adventurous: You are willing to accept significant capital risk for the prospect of good long-term growth. You are happy to maintain very high or total exposure to equities and accept that equities can have volatile capital values.
Objective: To achieve long-term capital growth coupled with a moderate but growing income, by maintaining a portfolio consisting predominantly of high quality UK ordinary shares in those investment sectors where opportunities for growth are most favourable.
Strategy: The fund will primarily invest in ordinary shares and convertible stocks of UK companies.
Can I switch funds easily?
Yes. You can switch your investment to a different fund at any time. There is currently no charge for this. If you want to switch only part of your investment, a minimum of £500 must be switched. You should be aware that switching could trigger a potential liability to Capital Gains Tax.
Full details of this plan can be found in the Portfolio Investment Plan Key Features Document which should be read and understood before you decide to proceed with any purchase. This can be requested via our contact us page or by calling free on 0800 622 323.
For security and training purposes, telephone calls may be recorded and monitored. Your enquiry may result in a call from an NFU Mutual Financial Consultant or Customer Telephone Adviser who advises exclusively on NFU Mutual's products and services.
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