Investment Management

Tax efficient savings, high growth investment – what's right for you?

The starting point for any successful savings or investment plan is a thorough understanding of your financial goals and current financial commitments. Having gone through this initial fact finding exercise, we would be in a position to make recommendations.

DHM Wynchwood LLP currently looks after assets in excess of £250 million and has a comprehensive and research led approach to investments. The investment funds we recommend have undergone rigorous quantitative and qualitative analysis within the relevant fund management companies to ensure they have the best chance of delivering results in line with their stated objectives.

As every individual is different, it is impossible to provide advice and recommendations on a website. Listed below however are some of the saving and investment options we would discuss with you if they were felt to be relevant.

TAX EFFICIENT SAVINGS

Each year, every UK adult has an Individual Savings Account (ISA) subscription allowance, limited to £20,000 for 2018/19. All interest received and capital gains on these accounts is tax free.

For children under 18 years of age, Junior ISAs are available but with a limit of £4,260 for 2018/19. These are subject to separate, although similar, tax efficient rules.

We recommend that all investors consider using their tax-free savings allowance each year by seeking our advice on the suitability of available options, ranging from a cautious attitude to risk through to the more adventurous.

From the 2018/19 tax year the government is introducing Lifetime Individual Savings Accounts (LISA). The new LISA can be opened by anyone aged between 18 and 40 and can be used to either fund for a first time buyer’s house deposit or as tax free savings for retirement (so long as it is left until you are 60).

Eligible individuals will be able to save £4,000 per annum into a LISA and receive tax relief of 25%, as long as certain criteria are met.

Read more about ISAs here

UNIT TRUSTS AND OEICS

As a pooled investment, there are many advantages to investing in unit trusts as opposed to individual shares – including reduced risk and costs. Open Ended Investment Companies (OEICs) also provide opportunities for a diverse combination of investment options.

As with all investments, you should take specialist advice to make sure that this type of investment is right for you and to select an appropriate unit trust in which to invest.

Read more about unit trusts and open ended investment companies here

INVESTMENT TRUSTS

These are similar to unit trusts in that they invest in the shares of companies and provide the opportunity for investors to spread risk. When you invest in an investment trust, you buy shares in a company that invests in other companies, not units in a fund.

Like unit trusts, investment trusts provide a variety of different types of investment from medium to relatively high risk. Some investment trusts focus on capital growth whilst others invest for a steady income from dividends. Again, it is essential to take advice before selecting an investment trust as part of your investment portfolio.