Investing inside and outside an ISA

ISAs offer generous tax breaks: you can invest up to £7,200 in each tax year, and all of your returns are free of capital gains tax. An ISA is not an investment in itself. It is a wrapper protecting your investments from tax. You can have a range of investments within your ISA.

To apply for an ISA click here.

At Cavendish Online we have seen a growing demand for choice, and our Fundsupermarket offers a real step forward for ISA investors. Just as high street supermarkets will offer its customers other companies' products the Fundsupermarket offers you the broadest range of funds. This means that with our Fundsupermarket:

• You can mix funds from many different providers in your ISA for any one tax year.
• You'll ever need to go to one place for your ISA each tax year.
• You can take advantage of new funds launched by the companies in our Fundsupermarket.
• You can move your ISA investments from fund to fund within the Fundsupermarket without losing your tax-free status.

Fine Tuning your ISA

Once you have opened your ISA, you can top up your investment whenever you choose, provided you keep within the limit of £7,200 for a maxi ISA.

• The minimum top-up is just £250.
• You can move your investments from fund to fund within the Fundsupermarket whenever you like.
• The switching fee charged by Fundsnetwork is just 0.25%. You can invest on a monthly basis, with a minimum investment of £50 per fund.
• You can increase, decrease (subject to the minimum) or stop your monthly contributions at any time.

Investing outside an ISA

The tax advantages of an ISA make them the first choice for most investors, but if you wish to invest more than the maximum allowances then you must do so outside an ISA. This would be into an OEIC or unit trust direct.

• The minimum investment in each fund is usually £1,000, but some funds allow investments of £500.
• Further investments into the same fund can be as low as £250.
• here is a maximum investment of £10,000 on each online transaction within Fundsnetwork, but you can make as many transactions as you like, or you can deal by cheque.