What can I invest in?

ISA – what can I invest in?

With an ISA from The Share Centre you have access to a whole world of ISA eligible investment opportunities – from shares and government securities to Investment Trusts.

Our Self-select Funds ISA has been designed specifically for ISA eligible Unit Trusts and OEICS.

Stocks and shares (equities)

A Share is a unit of investment in a company. The price will rise or fall according to the laws of supply and demand, driven by the attractiveness of the company and its performance.

Shares that are quoted on a recognised exchange, such as the London Stock Exchange, are all eligible for an ISA (though AIM shares are usually excluded).

Unit Trusts

Unit Trusts are collective funds which allow private investors to pool their money in a single fund. It allows investors to spread their risk, get the benefit of professional fund management and reduce dealing costs.

Open Ended Investment Company (OEIC)

An OEIC is a fund that offers shares in a company, as opposed to units in a trust. It allows investors to spread their risk, get the benefit of professional fund management and reduce dealing costs.

Investment Trusts

An Investment Trust is a company quoted on the London Stock Exchange which invests its shareholders' money in the shares of other companies.

Corporate Bonds

A Corporate Bond represents a loan to a company. The money is lent to the company in return for a fixed rate of interest and full repayment of the loan at the end of a fixed term.

Remember, to be able to hold a Corporate Bond within an ISA it must have at least five years to run to maturity from the date of your purchase.

Gilts

A Gilt, or Gilt-Edged Security, represents a loan from the investor to the Government. Because the Government is unlikely to default on a loan, Gilts are held to be a lower risk than company-issued Bonds.

Remember, to be able to hold a Gilt within an ISA it must have at least five years to run to maturity from the date of your purchase.

Exchange Traded Products

There are two main types of Exchange Trade Products, Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). Both of these are like shares as they are listed and traded on a stock exchange.


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