This information is designed to help you understand more about saving and investing before you make any decisions and not to provide you with financial advice.
If you have any doubts about the suitability of a product or fund you should seek financial advice. If you don't have a financial adviser you can find an adviser in your area at www.unbiased.co.uk. Where advice is provided there may be an additional cost to you.
With Select Investment, you can choose to invest in up to 10 funds. We have a wide range of professionally managed funds available to you. You can view our range of funds by visiting our Fund Centre .
With so many funds, you’re bound to find something that suits you. You can invest for growth, income or a combination of both. As you go through different stages in your life, you’ll probably find that your needs change. We won't charge you to switch your money between funds.
To make it easier for you to see exactly what’s what, we’ve split our funds into categories. Here’s a quick rundown of the different categories:
We have two funds that offer different levels of guarantees. Here’s a brief overview of them:
The guaranteed funds offer a fifth anniversary guarantee on a percentage of your original investment into the fund. Any withdrawals or switches out of the guaranteed funds before the fifth anniversary will reduce the guarantee in proportion to the number of units cancelled, rather than the cash amounts taken from the fund. In this event, you may not get back the full amount of your original payment into the fund.
At the fifth anniversary, you’ll get back at least the amount you invested, less any money you’ve withdrawn or moved out of the fund.
At the fifth anniversary, you’ll get back at least 90% of the amount you invested, less any money you’ve withdrawn or moved out of the fund.
The funds invest in a mix of assets including equities. The proportion of your money invested in equities provides most opportunity for your investment to grow. The value of equities can go down as well as up depending on market conditions. If the market goes down, the fund manager will sell equities to make sure the value at the fifth anniversary doesn’t go below the guaranteed amount. Similarly, if the markets go up, the fund manager may increase the equity proportion, so increasing the potential for growth. In short, as market conditions change during the five-year period, so will the proportion of equities in the fund, which could limit the growth potential.
On the fifth anniversary you can choose to:
This is a special type of mixed asset investment. It shares the profits and losses of a with-profits fund with investors through a system of bonuses. Your payment buys units in a with-profits fund. For most with-profits funds, the price of these units increases with the addition of regular bonuses.
As a result of smoothing, the investment risk on a with-profits fund is lower than investing directly in the same stocks and shares or property.
However, we may have to make a market value reduction if you take money out of a with-profits fund. This could happen where there’s been a large or sustained fall in stock markets or when investment returns are below the level we normally expect. This reduces the value of your investment. We apply a market value reduction to make sure all our customers receive a fair share of the returns earned over the period of investment.
We guarantee we will not apply a market value reduction on your death.
The value of your investment can go down as well as up and you may not get back what you originally invested.
You can find a simplified explanation of how the Aviva With-Profit Fund works in our brochure A guide to your with-profits investment and how we manage our With-Profit Fund (PDF 501KB).
Your financial adviser should be able to give you a copy.
Our Principles and Practices of Financial Management (PPFM) provides more detailed technical information about how we manage our With-Profit Fund.
Please get in touch with us or your financial adviser if you’d like a copy. Alternatively, you can download one from our website aviva.co.uk/ppfm.
You need to speak to a financial adviser to apply for Select Investment. An adviser will be able to help you decide if this is the right investment for you and go through the application process.
If you don't have a financial adviser you can find an adviser in your area at unbiased.co.uk. Where advice is provided there may be an additional cost to you.