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What you need to know about the Aviva Investors Investment ISA

This is where we tell you more about our stocks and shares ISA.

We can’t give you financial advice, however this information may help you make an informed decision as to whether this investment is right for you.

Step 1

Understanding more about our Investment ISA

< back to stocks and shares ISA

FAQs

How does it work?

When you take out a stocks and shares ISA, your money goes into the investment funds you choose. Each fund invests in a different mix of assets. For example, some funds only buy shares in UK companies or property. Other funds invest in bonds or shares of foreign companies, whilst some are multi-asset funds investing in a range of different assets.

Once you invest, we pool your money with that of other investors. The value of your investment depends on the performance of the assets in the fund you choose to invest in.

The value of your investment will go up and down with the value of the fund. This is different to a cash ISA, where your return is based on the interest rate you receive. With your stocks and shares ISA, you’ll get back the value of your investment in the funds you’ve chosen at the time you decide to close your ISA.

What do the changes announced in the 2014 budget mean?

With effect from 1 July 2014, the overall annual ISA allowance for 2014/15 increased to £15,000. This isn’t a new allowance on top of the £11,880 available between April and June 2014; it simply means the allowance increases by £3,120.

There are also a number of other changes. Some of the main ones include:

  • New subscriptions can be split in any proportion between cash ISAs and stocks and shares ISAs.
  • Providers are able to offer cash and stocks and shares in the same stocks and shares ISA. (Please note that Aviva does not currently offer any funds for holding cash in an ISA).
  • You can transfer freely between stocks and shares ISAs and cash ISAs; the amount transferred will not count towards your allowance
  • If you opened an ISA in the 2014/2015 tax year prior to 1 July, you won't be able to open a new ISA of the same type before 6 April 2015. You can however increase your contributions to your existing ISA up to the new £15,000 limit.

What charges do I pay?

We don’t currently make a charge for investing your money in a stocks and shares ISA. Neither do we charge you for withdrawing your money.

You have to pay the fund managers for their services. You do this by paying a fund management charge. Depending on which funds you choose, you may also have to pay other charges.

As the fund charges vary from fund to fund, we can’t list them all here. The charges for each individual fund appear in the key investor information document for that fund. Please make sure you read this document for each fund you’re interested in.

How much money can I make?

That depends on how much money you invest and the funds you choose to invest in.

We can’t guarantee that you will make any money or that you will get back the amount you originally invested. The nature of investment is that you speculate to accumulate. In other words, you have to take a risk with your money to stand a chance of making more money.

We produce a fund fact sheet for each of the funds we offer. On the factsheet, you’ll find a graph showing how the fund has performed in the past. This is for information only. Please don’t take past performance as an indication of how the fund will perform in the future.

What are the risks?

Whenever you invest, the value of your investment can go up and down and you may not get back what you put in. The risks vary from fund to fund depending on what type of assets they invest in. Each of our funds carry a risk of losing money, but the risk will be lower in some funds than in others.

You must read the risk information for each of the funds you’re interested in before you invest. You can find this in the key investor information document for each fund.

Some funds may be exposed to different risk factors than other funds. For example, if you invest in a fund which holds foreign currency or invests in overseas assets, the exchange rate will affect the value of your investment.

We offer a range of funds suitable for different risk profiles. That means you can choose funds that best match your personal attitude to risk.

Find out more about the way you feel about risking your money in our section about understanding risk.

How do I manage my stocks and shares ISA?

Once your stocks and shares ISA is up and running, you can register for online access.

When you’ve done that, simply log into your account and you can manage your stocks and shares ISA from there. You can check how your investment is performing, change your payments and alter your personal details online.

You can access the site from a desktop computer, laptop, tablet or mobile phone.

Can I get hold of my money if I need to?

You can withdraw your money at any time.

However, please bear in mind that you should think of a stocks and shares ISA as a medium-to-long term investment of at least five years. If you think you may need to take your money out before then, this kind of investment may not be suitable for you.

If you decide to withdraw your money, you can close your stocks and shares ISA completely or leave at least £500 in it to keep it open. The minimum withdrawal you can make is £500.

If you withdraw money from your stocks and shares ISA, please bear in mind that you may be withdrawing part of your original investment, not just any increase to the value of your investment.

Can I have a stocks and shares ISA if I already have a cash ISA?

Yes, you can. You can open one stocks and shares ISA and one cash ISA each tax year. From 1 July 2014 you will be able to hold both cash and stocks and shares in the same stocks and shares ISA.

The annual limit for a cash ISA in the 2014/15 tax year is £15,000 (if you don't invest in a stocks and shares ISA). You'll be able to invest all of that allowance in a cash ISA or split it between your cash and stocks and shares ISA as you wish.

From 1 July 2014, your overall ISA allowance increases to £15,000 and the separate limit on cash ISAs disappears. That means if you invest £10,000 in a cash ISA, you can invest up to £5,000 in a stocks and shares ISA, or any other split you wish.

What do I need to know about tax?

An ISA is a tax-efficient investment. That means you don’t have to worry about paying income tax or capital gains tax on the money you hold in it. You don’t have to file a tax return or even tell HM Revenue & Customs that you have an ISA.

It isn’t completely tax free because we pay corporation tax on the funds you invest in. You can’t reclaim that tax, but you don’t pay any other tax on your investment.

How much can I invest?

The annual limit for subscriptions to an ISA in the 2014/15 tax year is £15,000.

You can open your ISA either online or by post.

To fund your ISA, you can either make a lump sum payment of at least £500, or regular payments from £50 a month. You can also combine the two options, as long as the same minimum payments are made.

Is it right for me?

This depends on a number of things, including:

  • How much do you want to invest?

    Are you investing a lump sum? If so, you need at least £500. If you’d prefer to invest monthly, you can start your ISA with as little as £50 a month.

  • How long do you want to invest for?

    Usually, the longer you can invest your money, the better chance you have of seeing returns. This is because you need to give your money time to grow. Unlike a cash ISA where you may shop around for the best rates every year, you should think of an investment like this one as lasting at least five years. If you want to invest for less time than that, it may not be suitable for you.

  • Will you need to take your money out quickly?

    You can get hold of your money at any time, but we strongly suggest that you leave it to grow for at least five years. If you think you might need this money quickly, you may be better off putting it in a deposit account.

  • Are you eligible for an ISA?

    The government sets out criteria for investing in ISAs. You must be over 18, a UK resident, a Crown employee or the spouse or civil partner of a Crown employee.

  • Do you already have an ISA for this tax year?

    You can’t take out more than one stocks and shares ISA like this one in one tax year. If you already have an ISA, you can transfer your existing ISA across to us.

If you want help deciding whether to invest or not, we recommend you speak to a financial adviser. They will be able to assess your situation and offer you advice. You will probably have to pay a charge for this. You can find an adviser in your area through unbiased.co.uk.

Why choose Aviva for my stocks and shares ISA?

  • We’re a global name you can trust, combining strong life insurance, general insurance and asset management business under one powerful brand.
  • We have 34 million customers worldwide.
  • We’ve been in business for 317 years.
  • We are the UK’s largest insurer, with one in four UK households having an Aviva insurance product.
  • In 2012, we paid £29 billion in claims and benefits to our customers around the world.
  • The Aviva Investors Investment ISA is provided by Aviva Investors, our respected fund management house.
  • Aviva Investors is a global asset management business, dedicated to building and providing focused investments for clients.
  • With assets under management in excess of £245 billion at 30 September 2013, Aviva Investors clients benefit from the company's broad experience of local markets and considerable global resources.

Ready to take the next step?

Step 2

Choose where to invest your money

Choose one of our two simple ways of investing your money in investment funds.

Want more help and information?

To learn more about ISAs and investing in general, visit our Saving or Investing what's the difference and which is best for me? page. We can’t offer you financial advice, but the information in these pages could be useful when you’re deciding what to do.

If you’re in any doubt, we strongly recommend you talk to a financial adviser. If you don’t already have one, you can find an independent adviser in your area at unbiased.co.uk. An adviser will probably charge you for their time and expertise.

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