Investment ISA Performance - Should You Invest?

Investment ISA performance depends primarily on the fluctuations of the stock market. In essence, money placed into investment ISA accounts is used (indirectly or directly) to buy stock market shares. Whether profit is made, and how much of a profit is made, depends on the invested shares.

There are several reasons why many people consider ISA investment accounts to be worthwhile. The fact that it is tax-free is something that persuades a lot of people that an investment ISA is a good thing to use.

In normal savings, capital gains tax applies to money that is made from selling shares and income tax is applied on any earnings from investments. With investment ISAs, the profit that is made comes tax-free. Investment ISA accounts are well known for protecting savings from the taxman.

There are some drawbacks to using an investment ISA to save money. You can only save a certain amount through ISA accounts each year. The amount which you can save depends on whether you also have a Cash ISA account and how much you have invested in that.

Unlike opting into using a cash ISA, an investment ISA will have fees deducted from your capital. Normally, you will need to make a deposit to cover these fees (which can be anywhere between 2-5%) and the cost of purchasing shares.

Whether an investment ISA is worth it depends on a variety of factors. Shares performance, the number of withdrawals you make (plus amount withdrawn) and the amount you would have to pay in fees should all be taken into consideration when using Investment ISA accounts.

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