Either way, the underlying investment decisions regarding specific company shares are taken by the manager, with no need for you to be involved.
One option that might be considered by those aged 18-39 is the Lifetime stocks and shares ISA, which includes a government bonus of 25% of any investment made each tax year. The maximum investment each year is £4,000.
If you would prefer to be more hands-on and pick your own stocks and shares to house within your tax-efficient ISA wrapper, see our Self-select ISAs page.
It’s worth bearing in mind that any investment in the stock market, whether managed on your behalf or otherwise, should be seen as a long-term proposition. Many investment specialists recommend investing over a minimum five-year period. If you can’t tie up your money for five or more years, or if you can’t stomach the risk of getting back less than you invest, then a savings account is probably more appropriate for you.
Understand the risks. The value of your investment and the income derived from it can go down as well as up and you may get back less than you originally invested. The tax advantages of ISAs may change in the future and also depend on your individual circumstances.
MoneySuperMarket doesn’t offer a comparison service for this type of product but we have compiled a list below of providers who can help.
Product information supplied has been provided by each individual brand not MoneySuperMarket.