Stocks and shares ISA FAQ
What is an ISA?
An ISA (Individual Savings Account) is the tax privileged personal investment plan which replaced PEPs and TESSAs on 6th April 1999
You can currently invest up to £7,200 into an ISA in each tax year. Up to £3,600 can be invested in cash and the remainder into stocks and shares. Alternatively, the full £7,200 can be invested into stocks and shares if you wish.
The value of tax benefits depends upon individual circumstances, and may be subject to change in the future.
Am I eligible?
To open an NFU Mutual Stocks and Shares ISA, you must be aged 18 or over and be resident and ordinarily resident in the UK for tax purposes or, if not so resident, you perform duties which, by virtue of Section 132(4)(a) of the Income and Corporation Taxes Act 1988 (Crown Employees Serving Overseas) are treated as being performed in the UK or you
are married to or a
civil partner of a person who performs such duties.
What is the NFU Mutual stocks and shares ISA?
The NFU Mutual Stocks and Shares ISA invests solely in stocks and shares through the NFU Mutual OEIC. It is designed to maximise growth prospects and does not invest in cash. The value of a Stocks and Shares ISA can go down as well as up and you may not get back what you invested.
NFU Mutual does not offer a Cash ISA Option.
What do my contributions buy?
Your investments buy shares in one or more of the funds within the NFU Mutual OEIC at their current price.
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.
How much can I invest?
You can currently invest up to £7,200 in a Stocks and Shares ISA each tax year.
Regular savings:
- If you want to contribute on a monthly basis, the current minimum amount is £25 per month.
- The maximum monthly amount is currently £600.
- You can stop, restart, increase or decrease your regular amounts at any time.
Lump sum investments:
- The minimum lump sum you can contribute to open your ISA is £1,000.
- £1,000 is also the minimum lump sum top up you can make (or less if required to reach the overall maximum investment limit).
Can I take money out of my ISA?
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. You should remember that if you make withdrawals, the amount of your capital will reduce if the growth of your investment does not exceed the level of withdrawals taken.
Does the stocks and shares ISA produce an income?
Yes. You can choose to take the income generated if you wish. Alternatively, the income generated will automatically be reinvested.
Can I transfer my existing ISA to the NFU Mutual stocks and shares ISA?
Yes. You can transfer from another stocks and shares ISA that invests solely in stocks and shares, or from an old Insurance ISA. You can also transfer your investment from the Shrewd Savings Plan ISA (NFU Mutual's With-Profits based stocks and shares ISA) if you wish. We can accept transfers from cash ISAs.
What funds are available to invest in?
There are three funds to choose from:
1. NFU Mutual gilt and corporate bond fund
Risk Rating: Low - Medium: You're comfortable with some risk to your money. You accept that other types of investment may provide the potential for better returns.
Objective: To provide a return from a portfolio investing mainly in gilts and investment grade corporate bonds.
Strategy: The fund will invest in a portfolio of bonds and other fixed and floating rate securities denominated mainly in sterling and issued by governments, government agencies, supra national and corporate issuers (including preference shares). Corporate bonds and other securities purchased by the fund will be of investment grade and have terms of at least five years when bought. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
2. NFU Mutual global growth fund
Risk Rating: Medium - High: You're willing to accept significant risk for the potential for good long-term returns. You're happy to invest fully or heavily in equities and accept the possibility of extreme changes in the value of investments.
Objective: To achieve long-term growth through investment in any country and in any economic sector of the world.
Strategy: Although investments will be made in any country the fund is biased towards the worlds major equity markets, particularly North America, Europe and Japan. The fund will invest mainly in equity securities. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
3. NFU Mutual UK growth fund
Risk Rating: Medium - High: You're willing to accept significant risk for the potential for good long-term returns. You're happy to invest fully or heavily in equities and accept the possibility of extreme changes in the value of investments.
Objective: To achieve long-term capital growth with a moderate but growing income, by maintaining a portfolio mainly of high quality UK ordinary shares in investment sectors where opportunity for growth is most favourable
Strategy: The fund will invest in ordinary shares and convertible stocks of UK companies. The fund may use financial derivatives but only for hedging or efficient portfolio management purposes.
The above information is based on NFU Mutual's understanding of current HMRC practice and legislation which is subject to change.
Full details of this plan can be found in the
Simplified Prospectus
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 on NFU Mutual's products and services and in special circumstances those of other providers.
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