investments

Assuming that a savings account represents a 'safe' investment, first direct has put together a simple suite of funds for its customers that offer both 'medium' and 'higher' risk investments. These funds each invest in a diverse range of stocks and shares to help reduce risk. The funds we offer and details of risk ratings are:

• HSBC FTSE All Share Index Fund 
• Invesco Perpetual UK Growth Fund 
• Schroder European Alpha Plus Fund 

putting your money to work

All three of the investment funds available aim for growth by putting your money where it can work for you. Depending on which fund you choose, your money will either be actively managed by experts or will track the markets.

It goes without saying that investment funds are more risky than putting your money into a savings account - in fact you may not get back the original amount you invested.

a word to the even wiser

An ISA is basically a way of reducing the amount of tax you pay on an investment. So you could make even more of your money by wrapping your chosen investment fund(s) within a stocks and shares ISA - up to the current subscription limits. Currently, the maximum allowance is £7,200 a Tax Year, of which up to £3,600 can be in a cash ISA. Any returns within the ISA will then be tax efficient, which means you don’t pay Income or Capital Gains Tax on them. Bear in mind however the favourable tax status of ISAs may not be maintained in future. The value of tax advantages depends on individual circumstances.

Remember, stock market investments should be viewed as a medium to long term investment (for at least five years). And obviously, the value of shares may go down as well as up and you may not get back the amount you originally invested.