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Thinking of investments?

Some points to consider before investing

1. Are you considering the most suitable products to achieve your objectives?
2. For how long do you wish your money to remain invested?
3. Might you require 'immediate' access to your capital?
4. Do you require the potential of capital growth or is it more important to receive a steady income?
5. What is your attitude to risk?
6. What is your tax position - are you a higher rate tax payer or do you pay no tax at all?
7. Is the amount of your investment affordable - can you live comfortably without the capital being available for a while?
8. Spread the risk - avoid putting all your investment eggs in one basket.

What Investments are available?

BANK AND BUILDING SOCIETY DEPOSIT ACCOUNTS
Everyone should hold some savings on deposit with a bank or building Society for easy access in an emergency.

Recently new facilities are being offered by some banks which in addition to that on the Deposit Accounts, they will now also pay interest on Current Account (credit) balances.

Other banks now offer a 'pooling facility' whereby any credit balances (current or savings accounts) held with the same bank, will be used to offset against any borrowings (credit cards, personal loans or mortgages) in order to determine the interest which is chargeable. Where (for example) there is a current account balance of Ł1,000 credit, and a mortgage of Ł30,000, interest on this mortgage will be charged on the reduced net figure of Ł29,000 (Ł30,000 less Ł1,000.)

Please contact us for further details

NATIONAL SAVINGS BONDS AND CERTIFICATES
A savings investment backed by the British Government.

INVESTMENT AND WITH PROFITS BONDS
A single premium life assurance contract with the emphasis on the investment potential.

UNIT TRUSTS AND INVESTMENT TRUSTS
An indirect investment into the stock market with a wide spread of risk

INDIVIDUAL SAVINGS ACCOUNTS
These are tax free 'wrappers' introduced by the Government to encourage savings.
The tax free 'wrapper' may surround a stocks and shares element (including unit trust), cash (including National Savings) and life assurance products.

You may invest in either a MAXI ISA or a MINI ISA. You must not have both running in any one tax year.

What are the limits?

Maxi ISA
Ł7,000 in stocks and shares alone
or
Ł3,000 in stocks and shares Ł3,000 in cash Ł1,000 in insurance

Mini ISA
Ł3,000 in stocks and shares Ł3,000 in cash Ł1,000 in insurance

If you wish to invest more than £3,000 in stocks and shares

You should use a Maxi ISA - you can invest up to £7,000.

Which ISA to choose

Some ISAs aim to produce a regular income whilst others provide for capital growth.
Some are high risk, others low risk.

THE DBS ISA SELECTION FOR 2000

Option	Plan Name	Suitability / Charges and Discounts
1	The Henderson European High Yield Corporate Bond Fund ISA	Choose this option if you require a low to medium risk investment giving a high tax-free monthly income. A special 1% discount reduces the initial charge to 3%
2	The Fleming Save & Prosper UK Smaller Companies Fund ISA	Choose this option if you require a medium risk growth ISA invested in the UK stockmarket. A special 2˝% discount reduces the initial charge to 3%
3	The Edinburgh North American Fund ISA	Choose this option for a medium risk growth ISA invested in the stockmarkets of Canada and the United States of America. A special ˝% discount reduces the initial charge to 3%
4	The Newton Continental European Fund ISA	Choose this option if you require a medium risk ISA invested in a top performing European growth fund. A special 1% discount reduces the initial charge to 3%
5	The Fidelity International Fund ISA	Choose this option if you require an international growth ISA with a medium to adventurous risk profile. A special Ľ% discount reduces the initial charge to 3%
6	The Capel Cure Sharp Hallmark Growth Portfolio Fund ISA	Choose this option if you require an international growth ISA with a lower to medium risk profile. A low 3% initial charge is standard on this plan
7	The Standard Life UK Ethical Fund ISA	Choose this option if you require a medium risk UK growth ISA specifically designed for ethical investors. A low 3% initial charge is standard on this plan

Levels and bases of taxation and tax relief are subject to change. An Individual Savings Account is intended as a medium to long term investment. If you withdraw from an ISA in the early years you may not get back the amount invested.

What investments are tax exempt?

FRIENDLY SOCIETY SAVINGS PLANS
Whereas a conventional endowment or low cost endowment is subject to Tax within the fund, although the policyholder will have no further tax to pay, a Friendly Society Savings Plan is tax exempt.

Any fund, therefore, which has not been reduced in value by payments for taxation should, in theory, grow at a faster rate.

The maturity proceeds (as with a conventional endowment or low cost endowment) will not be subject to tax either.

Anyone over the age of one day can hold a Friendly Society Savings Plan.

Because of the particular tax advantages of a Friendly Society Savings Plan, the Government restricts the amount that any one individual can invest up to Ł25 per month or Ł270 per annum.

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